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Home Equity Loans and Mortgage Refinancing Parker CO

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.

Universal Special Auto Finance
303-773-44200
5690 DTC Blvd. Suite 340W
Greenwood Village, CO
 
Universal Special Auto Finance
303-773-44200
5690 DTC Blvd. Suite 340W
Greenwood Village, CO
 
Massa Auto Pawn
(719) 391-7296
2610 Delta Dr
Colorado Springs, CO
 
Key Truck & Diesel Repair
(303) 288-6613
5350 Dahlia Street
Commerce City , CO
 
Medved Chevrolet
(303) 421-0100
11001 W. I-70 Frontage Rd. North
Wheat Ridge , CO
 
AutoLoansInColorado.com
(720) 292-1226
Denver, CO
 
Front Range Auto
(303) 469-9528
7270 W. 120 Ave.
Broomfield , CO
 
Cycle City Auto Pawn Inc
(719) 597-9797
3345 Chelton Loop North
Colorado Springs, CO
 
R.D. Motors, Inc.
(303) 232-2303
8200 W. Colfax Avenue
Lakewood , CO
 
Boulder Toyota
(303) 443-3250
2465 48th Court
Boulder , CO
 

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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