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Home Equity Loans and Mortgage Refinancing Lehi UT

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.

(801) 304-9936
3712 Philadelphia Avenue, Midvale, UT 84047
alasak, AL
Bank of American Fork
(801) 766-1000
712 E Main St
Lehi, UT
Mountain America Credit Union
(801) 331-6042
25 E State Road 73
Lehi, UT
Zions Bank
(435) 529-7417
Salina, UT
Zions Bank
(801) 754-5842
120 E Main St
Santaquin, UT
Prestige Financial
(800) 984-6737
1420 South 500 West
Salt Lake City, UT
Zions Bank
(801) 768-8459
620 E Main St
Lehi, UT
Advance Til Payday
(801) 766-8348
770 E Main St
Lehi, UT
Right Away Financial Group
(801) 596-7468
Salt Lake City, UT
Bank of American Fork
(801) 756-7681
33 E Main St
American Fork, UT

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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