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Home Equity Loans and Mortgage Refinancing Fort Smith AR

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.

AutoLoansInArkansas.Com
Little Rock, AR
 
First American Cash Advance
(479) 648-3885
2600 Zero St Ste B
Fort Smith, AR
 
Andy's Pawn & Gun Shop
(479) 783-3658
2113 Dodson Ave
Fort Smith, AR
 
Express Mortgage
(479) 452-8855
7613 Rogers Ave Ste D
Fort Smith, AR
 
Allied Home Mortgage Capital Corp
(479) 646-3600
2801 Old Greenwood Rd
Fort Smith, AR
 
Thrifty Car Sales
(479) 636-5050
1810 So 8Th Street (Hwy 71B)
Rogers, AR
 
Uncle John's Pawn & Loan
(479) 649-7296
5324 Towson Ave
Fort Smith, AR
 
Southern Mortgage Company of Arkansas
(479) 494-7665
4300 Rogers Ave
Fort Smith, AR
 
1st Metropolitan Mortgage
(479) 783-8188
Fort Smith, AR
 
Simmons First National Bank
(479) 646-5590
4101 Brooken Hill Dr
Fort Smith, AR
 

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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