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Home Equity Loans and Mortgage Refinancing Pontotoc MS

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.

Jackson, MS
Pontotoc Title Loans
(662) 488-8575
291 W Oxford St
Pontotoc, MS
Ez Cash
(662) 488-9944
230 Highway 15 N
Pontotoc, MS
Peoples Finance Co of Pontotoc
(662) 489-1215
333 W Reynolds St
Pontotoc, MS
Pls Payday Loan Store
(662) 294-1225
321 W Monroe St
Grenada, MS
R & R Financial Services
(662) 489-3040
284 W Oxford St
Pontotoc, MS
First Trust Loans of Pontotoc
(662) 489-2866
2245 Highway 15 N
Pontotoc, MS
Downtown Finance
(662) 489-8822
270D W Oxford St
Pontotoc, MS
First Credit Corp
(601) 483-2627
802 23rd Ave
Meridian, MS
First Heritage Credit
(601) 898-9696
605 Crescent Blvd Ste 101
Ridgeland, MS

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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