Private Equity Loan
Your home equity is the difference between your property’s current market value and the amount of money you owe on the mortgage. If you’ve owned your home for some time, there’s a good chance you’ve gained a reasonable amount of equity (partial ownership) in your property. This equity can be an extremely useful tool when borrowing money for investment in other areas, such as starting a new business for example.
Home equity loans from New World Funding can help you get closer to your financial goals! Unlock your home’s equity, CALL US NOW!
What Is A Home Equity Loan?
A home equity loan – also referred to as a second mortgage, home equity instalment loan or equity loan – is a type of loan that allows property owners to borrow against the equity in their homes. The loan amount is calculated using the difference between the home’s current market value and the balance of mortgage due.
Most home equity loans have fixed lending rates, but there are some that have variable rates. Fixed-rate home equity loans include one lump sum payment, while variable-rate equity loans include revolving lines of credit.
Equity Loans Facts
Need to renovate your home, but you don’t have enough money? Looking to start a new business but don’t have the capital to get started? Whatever it is that you need the money for, you can use the equity in your home to pay for it. You can use your equity for any worthwhile reason like:
- Completing day to day business operations
- Helping to meet payment deadlines
- Renovating your home
- Buying a new car or boat
- Consolidating your debts, such as business loans or credit cards, into your home loan
- Investing in money market funds, shares or stocks
- Buying a business or investing in a business
- Buying another property.
How A Home Equity Loan Works
When you take out a mortgage, there are several things that take place. First, your monthly repayments begin to offset the amount you owe. Secondly, the value of your property increases in value (which is likely the case because property prices are going up in most parts of the country). As a result, you gradually gain “equity” which is the difference between what your home is currently worth and what you owe your mortgage lender.
If you have built up enough equity in your home, or other properties, then with a special type of loan called a home equity loan. This allows you to borrow against the equity for various reasons like consolidating debt, renovating your house, investing in a property or buying a business. Home equity may be the untapped resource you have been looking for to meet your ever-changing lifestyle needs.
Benefits Of Equity Home Loans
There are numerous benefits to home equity loans, such as:
- Home equity loans are simple and easy to obtain
- Home equity loans have lower interest rates than other types of debt like credit cards and personal loans
- You can get a tax deduction for interest paid
- You can use the money for almost any purpose, which offers you a lot of flexibility
- Using the equity in your home can help you buy another property or renovate your existing property
- You can consolidate all your expensive unsecured debts into one low-interest home equity loan, thereby reducing future repayments and saving money in interest.
Why Partner With New World Funding For Your Private Equity Loan?
At New World Funding, we offer both fixed and adjustable-rate home equity loans based on the value of your property and the time frame you’re looking to pay back your loan in. We offer:
- Low-interest home equity loans
- Accurate loan interest rate calculators
- Use the home equity funds to invest in real estate, shares, businesses, renovation, etc.
- New World Funding are experts in home equity
Start your application by filling out this form now.
Frequently Asked Questions
As with any financial product, home equity loans do have some drawbacks. The main drawback with this type of loan is that it can be an easy solution for irresponsible borrowers who have fallen into a cycle of perpetual borrowing and spending. It important to assess your needs thoroughly and seek professional advice if you are unsure if an equity loan is for you.
A home equity loan requires you to use your current financial stake or equity in your home as security or collateral to secure a loan or debt facility.
Equity loans are good in that they allow you to borrow against one of your most valuable investments, which is your home. House prices have risen rapidly all across the country in recent times, which means that homeowners have an inexpensive and ready source of credit at their disposal.
Most home equity loans have repayment periods ranging anywhere from three to twenty years, but some can go as long as 30 years.
In most cases, a lender will require an appraisal for a home equity loan in order to protect itself from the risk of default.
Yes. You are required to pay back the home equity loan in line with the agreed payment schedule.