Current Prime Rate Prime Rate History Home Equity Loans Avoid Mortgage Insurance  

HOME EQUITY LINES AND LOANS (HELOC)

There are many advantages of securing a home equity line against your home's value.  Whether you need to consolidate debt or simply enjoy the reassurance behind having an emergency line of credit it's important to understand how home equity lines can benefit you.  Some of the most popular ways consumers use home equity lines are:

Consolidate credit card debt
Probably the reason why most consumers take a home equity loan along with a possible tax deduction and easier approval criteria than unsecured personal loans.

Home Improvement
Use the existing equity in your home to make improvements such as another floor, an additional bedroom or even a garage.

Emergency Line of Credit
Once a home equity line of credit has been established many lenders will allow you to draw on this line for an extended period of time (usually 10 years minimum) without the consumer having to qualify again.

Avoid Private Mortgage Insurance (PMI)
If you are putting less than 20% down on a new home many lenders will require PMI (private mortgage insurance) however combining a traditional first mortgage with a home equity line may alleviate the need for this insurance.

 

 

HOW TO AVOID PAYING PRIVATE MORTGAGE INSURANCE (PMI)

If you put less than 20 percent down when buying a new home, lenders often require you to have private mortgage insurance (PMI). Private Mortgage insurance helps protect lenders and mortgage investors from severe financial losses in case the loan is not repaid. Although the benefits may not be seen on the surface these insurance premiums allow many lenders to offer loan programs with very minimal down payment requirements.  Without private mortgage insurance buying a home would become much harder since the bank would have to compensate for the risk in another way.  There are many ways you can avoid paying private mortgage insurance and still maintain low monthly mortgage payments. From a one time buyout to using a combination first and second mortgage at closing there are many attractive ways for you to finance your new home.

Learn more about PMI and the ways to avoid it ...

Privacy Policy | Products, pricing and terms are always subject to change and no offer to lend money is expressed or implied.  For more information please consult a licensed mortgage professional for details pertaining to any and all available home loan programs.  Not every applicant qualifies nor is every program available for each unique borrower.  We are not a lender or broker - this website is purely educational and not an offer to loan or extend credit for any reason.  No part of this web site may be reproduced or transmitted in any form by any means graphic, electronic, or mechanical without permission in writing from the publisher.  All logos, trademarks and other propriety marks belong to their respective owners and do not reflect an association or recommendation by any of the parties.  ©2002-2018 Prime-Rate.com.

×
We have made updates to our Privacy PolicyPrivacy Policy to reflect the implementation of the General Data Protection Regulation.