What are home equity loans?
The equity in your home is the difference between the saleable value of the property and the borrowing you have against it. For example, if your home is currently valued at 150,000 and you have 50,000 outstanding on your mortgage, the equity in your home would be 100,000. If you had paid off your mortgage in full, the equity would be 150,000.
Home equity loans enable you to raise money against this value in your home. People will take out a home equity loan because it enables them to raise money without having to sell their home, often helping them to consolidate debts, pay off credit cards or buy a car for example.
A home equity loan is a secured loan – lenders loan you the money secured against the value of your home. They are sometimes referred to as Homeowner loans. An alternative to home equity loans is home mortgage refinancing. This is where you typically increase your mortgage, taking some or all of the extra borrowing in cash.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
#home improvement loans
Find Home Improvement Loans Program Options
American Financial Resources is pleased to offer mortgage programs which can help people free up the cash they need to make improvements on their primary properties. While we do not offer home equity loans or home equity lines of credit (aka HELOCs ), we do provide a few home improvement loan options including conforming and non-conforming cash-out refinances, 203K rehab loans, and FHA cash-out loans. Below is some information on these products.
- Cash-Out Conforming Mortgages – Do you have some equity built-up in your current primary residence? If so, you may be able to capitalize on today s low interest rates and use funds from a cash-out refinance to make home improvements. We offer both fixed rate and adjustable rate mortgage products. Call us for loan-to-value and products guidelines.
- Cash-Out Jumbo Loans – If you have a mortgage that exceeds the conforming loan limits for your area, you likely have a jumbo mortgage. At AFR Mortgage, we have jumbo home improvement loan solutions in the form of cash-out jumbo mortgage products. Our pricing for these loans is very competitive and we have both fixed and adjustable rate options to choose from.
- 203K Rehab loans – These FHA loan programs are designed to help people finance the costs of designated home improvements and repairs without have to take out a second mortgage or go through a two-step construction to permanent loan. 203K loans are intended for uncomplicated improvements where consultants, engineers, and architects are not needed.
- FHA Cash-Out Refinancing – May allow for the highest loan-to-value limits for our cash-out refinancing programs. Loan limits and other restrictions may apply.
Contact American Financial Resources (4 options)
Thank you for exploring home improvement mortgage options with American Financial Resources. We appreciate the opportunity to earn your business. Please note that not all products are available in all states. Contact us for more information.