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Home Equity Loans and Mortgage Refinancing Kennewick WA

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.

AutoLoansInWashington.com
(360) 489-6000
Olympia, WA
 
Burns Auto Body Collision Center
(253) 474-7656
6454B McKinley Ave.
Seattle, WA
 
Truck Toys Inc
(360) 855-9700
222 Metcalf St
Sedro-Woolley, WA
 
Budget Car & Truck Sales
(509) 882-4800
101 Stover Road
Grandview, WA
 
Handan II, Inc
(253) 922-8280
1801 Alexander Ave
Tacoma, WA
 
BMW Northwest, Inc
(253) 922-8700
4011 20th St E
Tacoma, WA
 
Lynnwood Body Shop
(425) 776-0221
19230 Hwy. 99, Ste. 110
Lynnwood, WA
 
Temple Distributing Inc
(509) 773-4511
802 S. Columbus
Goldendale, WA
 
Bucky's Muffler, Radiator & Brakes
(253) 566-0747
6318 6th Ave
Tacoma, WA
 
Robert Larson's Automotive Group-Larson Toyota
(253) 475-4816
7815 S Tacoma Way
Tacoma, WA
 

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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