A readvanceable mortgage may be unfamiliar however, if you wonder about accessing your homes equity, this is the best product.
You can access as much or as little as you wish. You can pay less when borrowing and become debt-free sooner. It’s all up to you. This is due to its incredible flexibility.
Home equity Line of Credit
Readvanceable mortgage is similar to a line of credit however, however it’s secured to a property.
A readvanceable mortgage provides great financial flexibility. It gives you payment flexibility by allowing interest only payments. Any payment made over the minimum interest payment, goes directly towards principle. This feature allows you to pay down your mortgage as fast as you want.
Should any unexpected life event occur, causing expenses to be high, the flexibility to make interest only payments can help manage monthly cashflow.
Whether you’re looking to access a small amount for renovations or to pay down debt, the process is the same. A readvanceable line of credit is 65% of the homes appraised value. If the appraisal is 100,000, then a line of credit for $65,000 can be set up.
You can use our HELOC calculator here: https://www.mortgagetailors.com/heloc-calculator/
An appraisal is always required to confirm value. A lawyer is required to register the new mortgage against the title. People mistake having a readvanceable line of credit as not having a mortgage. It is a mortgage and is called a collateral mortgage.
If managing debt and having freedom to access home equity tempts you, this may NOT be the right mortgage product for you. You must have discipline to make principal and interest payments.
Qualifying has the same requirements as getting a traditional mortgage. It is based on income, assets, debts, strong credit and an appraisal.
If this type of product interests you, let’s sit down and go through the whole process. We can get you access to your home equity.