YourEquity.com

Loan Summary and Benefits

SUMMARY Looking to refinance your home? You hear a lot about refinancing your home mortgage when rates are falling. But did you know that the cost to refinance can be very expensive? Think back to the day you closed on your existing home. Remember those excessive closing and filing fees you had to come up with. Many of those similar "closing costs" may be charged again when you refinance: mortgage points attorney fees appraisal and inspection fees title search and insurance fees document preparations other In fact, experts say that your new refinancing rate should be anywhere from 1.5%-2.0% lower than your existing mortgage loan rate in order to recoup your cost to refinance.

 

Perhaps there is a better way How about using the existing equity in your home to payoff your mortgage. Most lenders do not charge closing costs, and you can lock-in a rate that may be lower than you existing rate. Let's illustrate an example below

 

BENEFITS get a fixed-rate home equity loan: select a repayment term that fits your budget — calculate your repayment options flexible repayment plans: find repayment plans that can be from 10-15-20 years, giving you the choice of low monthly payments to start payment flexibility: request to pay the minimum monthly payments or any additional amount at anytime without penality tax benefits: deduct interest charges from your taxes if you qualify — view your effective tax rate savings competitive rates: get competitive rates that are as low or lower than many auto loan programs benefits can vary: benefits may vary by lending institution: view our summary notes of product features and terms

 

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Using Your Equity May be a Better Way

How about using the existing equity in your home to payoff your mortgage.

Let's illustrate an example:

• Let's say your existing home has an estimated market value of $250,000.
• The amount remaining on your first mortgage loan is $150,000.
• Instead of refinancing and paying all of those upfront closing costs, how about doing something like this:
  
  

Estimated Market Value:		$250,000	$250,000	$250,000
Percentage LTV:		70%	80%	90%
Percentage of Market Value:		$175,000	$200,000	$225,000
Amount to Payoff Your Mortgage Debt:		$150,000	$150,000	$150,000
Remaining Equity:		$25,000	$50,000	$75,000

You will find that most banks charge zero closing costs with minimal hassle.

You simply apply for an equity loan with a participating lender and instruct the lender to use the equity in your home to payoff your mortgage.

Note that interest rates at 80%LTV or lower for large borrowing amounts come with very attractive rates. And many lenders offer up to 15, 20 and in some cases, 30-year repayment plans.

You can even use your excess equity to:

• remodel your home
• finance a new car, truck or recreational vehicle
• consolidate your loans
• put a child through college

Unlike traditional refinancing programs where you pay a lot to refinance your home, consider using the equity in your home to payoff your mortgage saving you all of the upfront mortgage refinancing costs.

Note: The recommended product, term and use are listed as illustrative purposes on how you might use the equity in your home. Please note that your circumstances may be different and that the recommended product, term and use may not fit your particular need.

YourEquity.com is not a lender. Therefore, we cannot quote rates or guarantee best terms. We refer applicants interested in getting a lending quote to Secure Rights, a licensed mortgage broker representing multiple home equity lenders.