Shea Case – Tap Your Equity for Home Improvements

Kendyl Young

6 years ago

Home Equity Loans are perfect for your dreams about an extra bedroom for your Glendale CA home. A new kitchen? Maybe you’d like to build an ADU (Accessory Dwelling Unit) or a guest house.

Glendale Ca Home values have risen quite a bit over the last few years. (Check out today’s market at our Glendale Ca Neighborhood Guide) Perhaps you have a large pile of equity sitting in your home. Would it be crazy to think about tapping into that equity to make the improvements you dream about?

Shea Case shares some wise advice and information you can use to make wise decisions.

Show Notes:

There are two ways to get a home equity loan

Cash Out Refi (refinance)

How much cash do you want from your home equity loan?
Add what you currently owe to that
Add closing cost
You get a new mortgage for the total amount – pay off the old mortgage, pay the closing costs and keep the rest!
You can use that money for anything you want

HELOC- Home Equity Line of Credit

Like a credit card
It is a home equity loan because it is secured by a lien against your house
Interest is tax deductible and a much lower interest rate than a typical credit card
Generally variable rate (can change depending on what happens with the economy)
TODAY- a HELOC is about 1% – 1.5% higher than a regular mortgage
Even though the rate is “variable” it is considered a pretty stable loan product
Get the approval, but only pay for what you use as opposed to cash out refi where you pay on the whole amount immediately