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Home Equity Loans and Mortgage Refinancing Forest Lake MN

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.

McCarthy Auto World
(916) 420-9923
3350 129th Ave NW
Coon Rapids, MN
 
McCarthy Auto World
(916) 420-9923
3350 129th Ave NW
Coon Rapids, MN
 
Wells Fargo Bank Na
(218) 287-3500
101 11th St S
Moorhead, MN
 
First National Bank of McIntosh
(218) 563-2865
260 Cleveland Ave SW
McIntosh, MN
 
First Farmers & Merchants Bank
(507) 533-4081
111 20th St NE
Stewartville, MN
 
AutoLoansInMinnesota.Com
St. Paul, MN
 
Cenntennial Mortgage
(651) 464-2265
855 W Broadway Ave
Forest Lake, MN
 
Nations Home Lending
(763) 785-0223
2904 Aspen Lake Dr NE
Minneapolis, MN
 
Prior Lake State Bank
(952) 447-2101
Prior Lake, MN
 
Farm Credit Services of Minnesota Valley
(320) 235-1912
3881 Abbott Dr
Willmar, MN
 

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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