Auto Leasing Guide
Go to now !

Home Equity Loans and Mortgage Refinancing Las Cruces NM

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.

Santa Fe, NM
Noble Finance Corp
(505) 524-2900
1247 El Paseo Rd
Las Cruces, NM
Citizens Bank of Las Cruces
(505) 647-4100
Las Cruces, NM
Cash Store the
(505) 524-3000
550 Walton Blvd
Las Cruces, NM
Manning John K & Associates
(505) 527-0688
1065 S Main St Ste G
Las Cruces, NM
Advance America Cash Advance
(505) 524-5829
2132 N Main St
Las Cruces, NM
Production Credit Assn of Southern New Mexico
(505) 528-7100
Las Cruces, NM
Security Finance
(505) 541-8908
2138 N Main St Ste B
Las Cruces, NM
Check 'n Go
(505) 522-6200
400 N Telshor Blvd
Las Cruces, NM
Farm Credit of New Mexico
(505) 528-7100
2800 Las Vegas Ct
Las Cruces, NM

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...

Click here to read the rest of this article from Lease Guide