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Home Equity Loans and Mortgage Refinancing Kapaa HI

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.

AutoLoansInHawaii.com
(808) 756-9311
Hilo, HI
 
Migita Lance State Farm Insurance Agency
(808) 874-2555
411 Huku Lii Pl Ste 304
Kihei, HI
 
Gateway Financial Services
(808) 242-5463
24 N Church St Ste 312
Wailuku, HI
 
American Express
(808) 585-3200
677 Ala Moana Ste 100
Wailuku, HI
 
Honolulu Federal Credit Union
(808) 687-8565
1001 Kamokila Blvd Ste 104
Kapolei, HI
 
Liberty Tax Service Omni Financial
(808) 486-0442
99-115 Aiea Heights Dr Ste 101
Aiea, HI
 
Bernstein Financial Services Inc
(808) 242-1965
2200 Main St Ste 502
Wailuku, HI
 
Waipahu Town Center
(808) 677-0606
94-366 Pupupani St
Waipahu, HI
 
Yoshida Mortgage Group
(808) 748-8893
95-1249 Meheula Pkwy Ste 170
Mililani, HI
 
Finance Factors
(808) 322-2747
78-6831 Alii Dr Ste H1
Kailua Kona, HI
 

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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