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Home Equity Loans and Mortgage Refinancing Owatonna MN

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.

St. Paul, MN
Brier Mortgage Corp
(507) 451-6961
660 W Bridge St Ste 100
Owatonna, MN
Wells Fargo Bank Na
(507) 455-9665
1400 S Oak Ave
Owatonna, MN
Farmers & Merchants State Bank
(320) 468-6422
80 Main St N
Pierz, MN
Pioneer National Bank of Duluth
(218) 624-3676
331 N Central Ave
Duluth, MN
McCarthy Auto World
(916) 420-9923
3350 129th Ave NW
Coon Rapids, MN
(507) 214-7827
5600 SE 14th Ave
Owatonna, MN
(507) 451-3661
422 Hoffman Dr
Owatonna, MN
Bell Mortgage
(763) 689-5146
125 Main St N
Cambridge, MN
Countrywide Home Loans
(507) 434-8990
111 N Main St
Austin, MN

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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