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Home Equity Loans and Mortgage Refinancing Rapid City SD

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.

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Sioux Falls, SD
 
Best Rate Title Loans
(605) 716-2842
1203 E Saint Patrick St
Rapid City, SD
 
Advance America Cash Advance
(605) 342-1600
608 E North St
Rapid City, SD
 
North American Title Loans
(605) 343-5003
1215 E Saint Patrick St
Rapid City, SD
 
First Western Bank
(605) 348-4545
650 Flormann St
Rapid City, SD
 
Rabo Agrifinance
(605) 348-3505
2525 W Main St Ste 309
Rapid City, SD
 
First Western Bank
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333 West Blvd N
Rapid City, SD
 
Cash-N-Go
(605) 393-2274
3788 E Highway 44
Rapid City, SD
 
Pioneer Bank & Trust
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2018 Mount Rushmore Rd
Rapid City, SD
 
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1000 Cambell St
Rapid City, SD
 

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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