Access "Trapped Equity" without Refinancing
By Charles Stallions, 850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.
(Charles Stallions Real Estate Services )
American homeowners have a record amount of equity in their homes. Many homeowners want to cash out part of that equity but don't want to trade a historically low-interest rate for one as high as it's been in 20 years.Instead of refinancing their home, getting a fixed-rate second lien is an option. This differs from a HELOC home equity line of credit, which gives you continual access to your equity at a variable rate. A HELOC has a draw period where you only must pay the interest.A second mortgage is a loan against equity where the homeowner will receive a lump sum and make payments to repay the loan and interest over a specified period. Generally speaking, lenders want the combination of the existing first lien and the new second lien not to exceed 75-80% of the home's current valu...
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