The adjustable rate mortgage or ARM has lost some of its popularity over the last decade or so with the decrease in fixed rate mortgage rates. This doesn’t mean there is no place for the ARM in today’s market; there are still those who have very good reasons for choosing this type of mortgage.
Pittsfield, MA -- (SBWIRE) -- 06/04/2013 -- Qualifying for HELOC (Home Equity Line of Credit)
Many people are choosing the Home Equity Line or Credit (HELOC) over the traditional home equity loan because of the flexibility and convenience. These loans are convenient in many ways but according to Real-Estate-Yogi.com, they are best utilized under the following conditions:
- Homeowner has a number of projects to complete that will not be completed at the same time
- Homeowner plans to use the money over a period of time such as to cover college tuition
- Homeowner wants the flexibility of a payment plan that is directly tied to the balance on his loan
- Homeowner does not need all of the funds at one time and wants the convenience of only paying for the funds he has actually used
Refinance Home Equity Line Of Credit in USA, Get Flexible Terms with Instant Approval!!
Are you interested in more information on choosing between a home equity line of credit and a home equity loan? The website includes a contact information form; all you need to do is fill it out and one of the representatives will be in touch with your promptly.
Refinancing Your HELOC
Since a line of credit has payments that fluctuate with the balance on the account, there are really only two reasons you might want to think about refinancing your home equity line of credit: the interest rate has decreased or the value of your home has increased and you want to access the additional equity. This doesn’t mean you can’t or shouldn’t refinance, but rather that it would not have any benefit other than under those previously mentioned conditions.
Applying for a Fixed Rate Mortgage
Today’s market makes the long term fixed rate mortgage more beneficial because of the lower interest rate. At times in the past the ARM rate provided more benefits because homeowners could wait for interest rates to come down and then refinance into a fixed rate mortgage, but that is not usually the case in the current market. Fixed rate loans provide steadier payment streams and allow homeowners to more easily monitor the balances on their mortgage loans as the years go by.
The Home Equity Line of Credit (HELOC) is usually the loan of choice for homeowners, especially those who want to make payments only on the funds they have used. While refinancing a home equity line of credit is possible, it is not usually necessary since the payments fluctuate according to the balance on the loan. Fixed rate loans have become more popular while the Adjustable Rate Mortgage (ARM) has lessened in popularity in relation to the lower interest rates on the long term fixed rate mortgage.
Applying for a home equity line of credit is not a difficult task, but you still need to conduct research. If you would like to do this easier, visit www.real-estate-yogi.com website located in Pittsfield, Massachusetts and take advantage on all the information that appears on the website. Another helpful resource on the site is the existence of the huge free database of over 240,000 legal and financial representatives with offices all over the country. If you would like to confer with one of them, all you need to do is call 1-800-397-1897 to set up a free consultation.