Auto Leasing Guide
Go to LeaseGuide.com now !

Home Equity Loans and Mortgage Refinancing Pell City AL

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.

American General Auto Finance
(800) 457-3741
2768 Eastern Blvd
Montgomery, AL
 
Fderaldebtreliefs
(801) 304-9936
3712 Philadelphia Avenue, Midvale, UT 84047
alasak, AL
 
Pioneer Credit Corporation
(256) 845-2698
2904 Greenhill Blvd NW
Ft. Payne, AL
 
Checkmate Cash Advance Center
(205) 338-3780
1507 Martin St S
Pell City, AL
 
Money Outlet the
(205) 884-0777
1604 Martin St S
Pell City, AL
 
AutoLoansInAlabama.Com
Montgomery, AL
 
Car Donation
(626) 263-9264
112/a bau
mymensingh, AL
 
McCurry Motors
(256) 713-0575
2601 d north memorial pkwy
huntsville, AL
 
Union State Bank
(205) 338-1000
Pell City, AL
 
Union State Bank
(205) 338-1000
20th St
Pell City, AL
 

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