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Home Equity Loans and Mortgage Refinancing Forest City NC

Home equity loans and home line of credit loans are often a good way to finance the purchase of a car. Refinancing your mortgage is another option. However, understand the benefits and the risks before making a decision.

ACE Motor Acceptance
(704) 882-7100
111 Cupped Oak Drive Suite F
Matthews, NC
 
AutoLoansInNorthCarolina.com
(919) 746-7722
Raleigh, NC
 
Steve Strange Insurance
(828) 754-0957
710 Blowing Rock Blvd
Lenoir, NC
 
national auto sales1
(828) 441-2271
1210 1st ave sw
hickory, NC
 
Bb&t
(828) 248-4100
Highway 74 Byp
Forest City, NC
 
Regional Acceptance
(252) 321-7700
1202 East Fire Tower Road
Greenville, NC
 
Global Motorist - Used Cars Charlotte
(704) 568-7373
6625 East Independence Blvd
Charlotte, NC
 
Pinpoint Recovery Service
(336) 932-8008
P.O. box 29
Stoneville, NC
 
Universal Finance
(828) 247-8728
141 Old Wagy Rd
Forest City, NC
 
Citifinancial
(828) 245-2061
135 W Main St
Forest City, NC
 

Home Equity Loans and Mortgage Refinancing

Looking for a source of cash to pay for a new car? Use the equity you already have in your home. Home equity loans and mortgage refinancing are often good solutions for people who need money to purchase a car. However, to use this type of loan for a car purchase, you should have good financial discipline and a stable lifestyle — and understand how such loans work.

Two different kinds of home equity loans - which is better?
A home equity loan is a conventional loan in which you borrow against your net financial interest, or equity, in your home. Such loans are for a fixed amount, have a fixed interest rate and a fixed term. The loan is paid down with monthly payments that cover both principal reduction and interest expense. The primary difference between this type of loan and a traditional car loan is that your home is the collateral, not your car. Should you default, your home could be at risk.

In comparison, a home equity line of credit (HELOC) is a variable-rate loan that is set up for a specified maximum draw amount. You can use (draw) any or all of that amount over a specified period of time, usually 5 to 10 years. There is also a specified repayment period, usually 10 to 20 years. Typically, a borrower only pays interest during the draw period, but must pay both principal and interest afterwards. Up front costs are typically fairly low. Interest rates are tied to the prime rate which can vary day to day. In this sense, HELOCs are like a...

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