When you own a home, aside from the advantages of being a homeowner, it gives you a little more flexibility if you need some extra money. Let’s face it, our situations change as time goes on. Since you bought your property in Dillsburg, PA you may have had children and they are getting older.
When it comes time to send them to college you may want to pay for the education your child gets and if you choose a private institution, it could get quite pricey. Unless you are fortunate enough to have a job that allowed you to save and invest enough money to cover the tuition, you might have to find another way to finance it.
As time goes on, you may want to add an addition to your home. You could also want to update your home by remodeling the kitchen or updating your bathroom. When you bought the place those 1950s tiles were fine, but now you want something more modern. You may want to remodel your kitchen to add an island or new cabinetry. Whatever your reason, you are looking for the least expensive and most tax advantageous way to get the financing you need to get the job done.
What Are My Options?
If you want to use your home to get the financing you need, several options are available to you. One way is a Dillsburg, PA mortgage loan refinance. A refinanced mortgage loan is also referred to as a cash-out loan. With this type of loan, you refinance your mortgage and add the amount of money you need to the total loan amount. How much you can add will depend on the current value of your home minus what you still owe on the original loan. You can’t take out a mortgage for more than your property is worth.
Another option is to take out a Home Equity Loan. In this scenario, A Plus Mortgage Solutions will help you calculate how much equity you have built up in your home. With both loan types, your property will have to be appraised to find out the current market value. Once your equity is calculated you can decide how much of the equity you want to borrow. Once approved for this Dillsburg, PA home equity mortgage loan, the amount of the loan is disbursed as a lump sum to you to do with as you wish.
Which One Is Better?
Which option of Dillsburg, PA mortgage loan is right for you depends on what you want it for and your overall financial situation. Cash out refinances have closing costs and points just like a regular mortgage. The refinance interest rates are usually higher than a conventional mortgage. Though it has lower fees than a cash-out refinance it may have a higher interest rate.
Both loans have fixed rates forinterest, but the Home Equity Loan means another loan payment on top of your mortgage. A Plus Mortgage Solutions handles both types of loans and would be happy to work out the numbers and help you decide which option is best for you.