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Home Equity Loans and Mortgage Refinancing Springville 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
 
Noble Finance Corp
(435) 656-8300
423 N Bluff St
Saint George, UT
 
Zions Bank
(801) 224-1112
Orem, UT
 
Advance Pay
(435) 833-0528
17 E Vine St
Tooele, UT
 
Wells Fargo Bank Na
(801) 342-2008
Provo, UT
 
Cash Store the
(801) 491-3555
1851 W 500 S
Springville, UT
 
Zions Bank
(801) 524-2216
870 N Highway 89
North Salt Lake, UT
 
Keybank
(435) 637-5111
690 E Main St
Price, UT
 
Check Into Cash
(801) 685-2902
6548 S State St
Salt Lake City, UT
 
Raincheck
(801) 501-9333
9860 S 700 E
Sandy, 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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