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Home Equity Loans and Mortgage Refinancing Park City 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.

Prestige Financial
(800) 984-6737
1420 South 500 West
Salt Lake City, UT
Cornerstone Home Mortgage
(435) 649-8585
1912 Sidewinder Dr Ste 216
Park City, UT
First Western Mortgage
(435) 649-9556
1245 Deer Valley Dr
Park City, UT
Comstock Financial Services
(435) 649-9608
1700 Park Ave
Park City, UT
Wells Fargo Bank Na
(435) 655-4050
Park City, UT
USA Lending
(435) 655-0282
725 Parkview Dr
Park City, UT
Wells Fargo Bank Na
(435) 655-4050
Park City, UT
Zions Bank
(435) 655-8831
1725 Uinta Way
Park City, UT
(435) 647-0040
751 Main St
Park City, UT
Granite Bail Bonds
(435) 655-9990
Park City, 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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