Summary: Using home equity, which is calculated by the value minus the mortgage balance, can be done by applying for a home equity line of credit. Use home equity to gain credit with information from an experienced real estate agent in this free video on home buying.
Alicia Lowther prides herself on providing excellent service for both home buyers and sellers in Pinellas County. Her commitment to personal ethics and a willingness to go the extra...read more
"Hello, my name is Alicia Lowther, licensed real estate professional with Realty Executives discussing how to use home equity. The first thing that you would like to do is calculate what is your home equity, how much equity do you have in the home. The way you do that is determine the home value minus the mortgage balance. And then you have the amount of equity. You can go to your lender, your current lender and ask them if they have home equity line of credit loans. The reason I suggest this is because those are usually the easiest, there are no closing costs and your lender just gives you a check book that you use whenever you want to make a purchase using your home equity. If your current lender doesn't carry or provide home equity line of credit, then you can go to other lenders, local banks, credit unions or a mortgage broker and shop rates for home equity lines of credit. Now remember that when you do use a home equity line of credit it is a second mortgage so it does put your house at risk if you're not able to make the payment. And lastly, one thing that you might want to consider is use it wisely and the biggest return on investment is seen with kitchen remodels or bathroom remodels. My name is Alicia Lowther, licensed real estate professional with Realty Executives discussing how to use home equity."
eHow Article: How to Use Home Equity
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