Fixed-rate mortgages have reached unprecedented levels since February 2011, with mortgages at significantly discounted rates to raise everything from vacations to spring home renovations and college classes. The popularity is skyrocketing in. Mortgages can be used for anything because there is no mortgage closing cost, but there are certain costs that make the most sense. Here are some of the best uses for fairness in your home.
1. Debt consolidation
The national average credit card rate for the first week of March 2022 was 16.17%. This is much higher than the average interest rate on fixed rate mortgage loans that can be used to repay high interest rate credit card debt and other high interest rate loans. Lower interest rates mean lower monthly payments. It also allows you to repay multiple credit cards and other debts at once, which may simplify your life and budget. This is an effective way to consolidate and save a significant amount of money of interest over time.
2. Housing renovation project
Home equity loans are a great way to fund home renovation projects and remodeling. After all, you are using your home property to improve your property and hopefully increase the value of your home. This is especially true if you can secure a low interest rate mortgage loan to complete the project.
If you want to sell, investing in your home can add value. If you plan to stay in place, it can help transform your space into your dream home for the rest of your life. Structured payments for home equity loans are an easy way to budget a home renovation project. Home mods that can help add value to your home include kitchen and bath mods, carpet and hardwood floor replacements, basement finishes, and exterior and landscape upgrades.
3. Down payment for investment real estate or new business startups
Using a mortgage loan instead of running out of savings to buy investment real estate or start a business is one of the best uses of your home stock. Home equity loans give you access to one-time cash payments at competitive interest rates and can be more cost effective than high interest rate business loans. Home equity loans can help you increase your real estate down payment and potentially reduce your monthly payments. You can also provide the funding you need to get your business on track.
4. Pay the tuition fee
Home equity loans are often used in place of student loans, personal loans, and credit cards to help pay tuition and other educational expenses. Whether you’re paying for your child’s college education or returning to the training you need to change jobs, low interest rate mortgage loans can help you reach your goals.
Benchmark Federal Credit Union offers a .99% APR fixed home mortgage loan on BenchmarkFCU.org for 60 months. Long-term and discounted rates are available.
Rebecca Worthington is Vice President of Community Relations at Benchmark Federal Credit Union. Benchmark FCU, the only federal credit union that exclusively serves Chester County, has been servicing the community for over 80 years and is known for its exceptional service. For more information on the products and services available with Benchmark FCU, please visit our website BenchmarkFCU.org. Anyone who lives, works, worships, or attends school in Chester County, Pennsylvania is eligible to join the Benchmark Federal Credit Union.
4 Best Uses for Home Equity Loans – Daily Local
Source link 4 Best Uses for Home Equity Loans – Daily Local