Home equity loans can either be a revolving line of credit or a one time, closed end loan. Revolving credit lets you choose when and how often to borrow against the equity in your home. Assuming you have enough equity in your home, a decent credit score, and enough income, this can be a great option for someone looking for a loan. You will most likely get a lower interest rate than on your current accounts and that interest can possibly be a deductible interest expense to you, which is a great benefit.

If you are struggling financially, we would not recommend borrowing money based on the equity in your home because if you miss any payments you could lose your home due to a foreclosure. When underwriting an equity loan, the lender will look at your credit score, debt-to-income ratio, loan-to-value, the amount of equity in the home, and many other factors as well. With the real estate market where it has been lately, if you actually did have equity in your home, taking out a loan against it, would greatly reduce whatever equity you have. We can refer you to one of our affiliates if you are in need of an equity loan or refinancing. If you believe that this may be an option that may be right for you, please give us a call and we will see if you qualify for an equity loan or to refinance.

At S.J. Packman & Associates, before we make any recommendations, our attorneys, certified debt specialists, and paralegals, are trained to ask the right questions to find out about your specific situation. Based on your current income and your financial hardship, we will determine which course of action will work best for you. We do not only offer one path, as there is no one process that can solve everyone’s needs. We will take our time with you and help evaluate what your best course of action should be. Call now and one of our advisors will be there to get you started on your path to financial freedom. There is no obligation to enroll, so don’t delay.