With fears of declining home values in certain areas, it's important that you evaluate your second mortgage. Whether you have a 2nd mortgage or a Home Equity Line of Credit (HELOC), check - is it as big as it can be? On a HELOC you don't need to pay for the money that you don't borrow. Our advice is to have as large a line as possible if you have the equity. Why risk an emergency to have to rush to call your mortgage professional to do a refinance, when you can have a checkbook ready with a large line of credit.
This is contingent upon having a responsible client who can control their expenses, of course... If you know that you cannot be disciplined in making sure you don't consume all of your home equity - don't take this course of action.
If you DO have the discipline, and you are paying a single dime in credit card interest, car loans, or any other non-preferred debt - an equity analysis is vital.
Our mortgage planners will conduct an Equity Repositioning Analysis for you to show how much you would save by refinancing with a debt consolidation plan.
Our appraisers can give us accurate home values based upon what has recently sold, what is currently listed, etc. Do you know what your home's value is? If not, call you mortgage professional today!
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