Three Options to Use the Equity In Your Home

Three Options to Use the Equity In Your Home

There are numerous benefits to owning your own home. Not only does it provide a place to live, but it can also provide a source of funds. Over time, most homes increase in value, and many homeowners use their gains for a whole host of purposes. Using your home’s equity can be a low cost source of funds. With so many factors to consider it’s important to know your choices so you can make the most of your home.

Refinancing to get cash out

With a cash-out refinance, you refinance your existing mortgage and also borrow an additional sum from your equity at the same time, giving you cash that you can use for whatever you want. There is also potential to combine a cash-out refinance with getting a lower payment or interest rate. How much you can refinance for depends on the value of your house and the lender’s maximum allowed loan-to-value (LTV) ratio. The LTV ratio is the percentage of the home’s value that is financed. For example, if the lender has a maximum 85% LTV ratio, you can borrow up to 85% of the home’s value.

Home equity loans

With a home equity loan, you receive cash in one lump sum at closing. Once you get the money, you cannot borrow further from the loan. The repayment period is often fifteen years, although it can be as little as five or as great as thirty years. Both the interest rate and the monthly payments for a home equity loan are usually fixed, meaning they do not change over time. Read More

What Do I Need To Know About a Construction-to-Permanent Mortgage? A construction-to-permanent loan combines development funding and home loan financing into one financing.

What Do I Need To Know About a Construction-to-Permanent Mortgage? A construction-to-permanent loan combines development funding and home loan financing into one financing.

See whether your property is qualified

For a construction-to-permanent financing, your brand-new residence need to be an owner-occupied primary abode or the next homes. The house sort must certanly be a one-unit, single-family detached residence, and BB&T makes it necessary that you decide on an authorized common company to construct your residence. For a renovation project, please speak to your neighborhood financial specialist.

Comprehend the details

With BB&T, might take advantage of home loan pros who will walk you through the complete financing process, so as that after energy will come, it’s possible to select from numerous permanent mortgage options to discover the one that meets your needs.

Understand your initial expenses

Just like a regular financial, you’ll want to possess appropriate down payment and resources to cover the closing costs.

It’s fairly common for home owners to make modifications or enhancements with their earliest plans during home-building procedure. Consider whether you may like to need this flexibility and plan accordingly—the property owner is responsible for any expense improves that result from modifications. Consult with your BB&T financial expert to learn more. Limits may use.

Completed the application

When you’re ready to start strengthening, e mail us, and a BB&T financial Professional will walk you through the details. Read More