Using the Equity in Your home
For many people, their home is their biggest investment and source of savings. When they need to borrow money for home improvements, major expenses, or to pay off accumulated debts, they use the equity in their home to borrow money.
Make Home Improvements
If you are looking to make improvements to your house such as building an addition or putting in a pool, you may want to consider borrowing against the value of your home. The improvement you make in your home could increase the enjoyment of your home, as well as the property value.
Pay Off Your Credit Cards
If you have credit card or other consumer debt, it is often cheaper to consolidate these expenses with your mortgage. Credit card interest rates are usually much higher than mortgage interest rates. And, the interest on your mortgage is usually tax deductible (check with your tax adviser), while the interest on your credit card is not. If you have enough home equity, you may be able to pay off your pricey credit card debts and save money.
Home Equity Loan vs. Refinance
Generally, there are two ways to use your home equity to borrow money. You can either refinance with a new mortgage that is larger than your remaining balance (a cash-out refinance) or get a home equity loan.
A CitiMortgage Loan Consultant can help you decide which loan fits your situation the best.
