Salt Lake Home Equity Loans (HEL) & Home Equity Line Of Credit (HELOC)
Salt Lake Home Equity Loans (HEL) or Home Equity Lines Of Credit (HELOC) allow you to tap into the home equity that you have built up in order to pay for repairing, remodeling or upgrading your dwelling. After years of dutifully paying off your mortgage, you may qualify for the valuable HELOC. Here are reasons why your Salt Lake Mortgage Broker can help you improve your property.
What is Home Equity?
Your home equity is the value of your property, which you own free and clear. Take the home market value and subtract your property debt outstanding (mortgage and liens) to arrive at your home equity. When you repay off your entire home mortgage and all the liens, then your home equity will equal your home market value.
Home Equity Factors in Salt Lake
Home equity can be very complicated to calculate, but it consists primarily of your property assets minus the property debts. Here are the three primary home equity elements:
- Real Estate Market
- Home Improvement
- Mortgage Repayments
When the Salt Lake real estate market appreciates, then you could benefit by a higher home price.
Adding a second story, garage or finishing your basement could also increase the resale value of your home. Many homeowners use HELOCs for “fixer uppers.”
Every mortgage repayment towards the principal will increase your home equity.
Improve Resale Value in Salt Lake
Why not use your home equity to improve your home equity? As previously mentioned, if you take out a Salt Lake home equity loan and use it to upgrade your property, you can increase the market value. This “multiplier effect” increases your home equity.
The HELOC is a line of credit (kind of like a bank account) from which you can draw funds. Discuss the terms of the HELOC with your Salt Lake mortgage lender – some must be used for specific tasks and others can be used for anything you need.
The HELOC is a second mortgage on top of your first mortgage. Fix, repair or upgrade your home based on the equity you have already built up.