Home Equity Loans

Equity is the dollar difference between what you owe on your property and it's market value. If you have non tax deductible debt, such as credit card or car loans, an equity loan will convert them into one fully deductible loan. Additionally, the pay off period will be stretched to as much as 30 years. This substantially reduces a family's debt expense and increases monthly cash flow.

An equity loan can consist of either a simple refinance with cash left over for the home owner after closing, or a second lien on top of an existing loan. A refinance offers better rates because it puts the loan in the first lien (lowest risk) position. However, it is subject to current market rates. If you're current loan was obtained when rates were at their lowest in the past few years, it probably makes sense to add a second lien instead.