Need to Pay Off High-Interest Debt?

woman getting ready to pay off high-interest credit cards and debt with a HELOC loan
Posted by Spring EQ on Jun 13, 2022 2:20:00 PM

You've seen the headlines. Rates continue to stay on the move. And more homeowners are turning to Home Equity Lines of Credit (HELOCs) as their go-to strategy to access the cash they need from their home's equity. Why?

 

 

1. Home Values are at record highs in many neighborhoods

 

According to CNBC.com, “Total housing wealth grew by $8.2 trillion between 2010 and 2020, according to a March report from the National Association of Realtors.” With all of this additional home value, homeowners have more equity to tap if needed for debt consolidation, home improvement or anything else.

 

Curious to see how much cash you could access from your home? Take 15 seconds to see with our Equity Estimator. 

 

2. Mortgage rates continue to rise

 

With rates continuing to rise from the record lows during the pandemic, many homeowners with low first mortgage rates don’t want to access their home’s equity via a cash-out refinance. According to CNBC.com, It can also be expensive to refinance, as there are extra closing fees involved.

 

3. HELOCs let you access home equity cash without touching your low first mortgage rate

 

Home equity lines of credit, or HELOCs, serve as a revolving line of credit similar to a credit card, but with some very big differences. A HELOC is typically taken out in addition to your existing first mortgage, and lets you borrow against your available home equity with your property as collateral.

 

As a result, a HELOC is considered a second mortgage and has its own term and repayment schedule, completely separate from your first mortgage. On CNBC.com, Thomas Blackburn (CFP with Mason & Associates) said: “You have a pool of money you can draw on, and it doesn’t cost anything unless you use it…It’s almost like insurance.”

Also on CNBC.com, Dennis Nolte of Seacoast Bank said, “You can’t eat your equity, but if you can monetize some of it to reduce debt and make life easier from a cash flow perspective, that makes a ton of sense in most situations.”

To see how much cash is available from your home, take 15 seconds to get in touch with us. To pay off high-interest debt. For home improvement. Or anything else. You may be surprised just how much cash you could access from your home.

 

 

 

Topics: mortgage, HELOC, finance, Financial Tips, Personal Finance, debt, debt consolidation, pay off debt

Recent Posts

Posts by Tag

Share
© 2024 Spring EQ LLC - NMLS ID # 1464945
 
 
 Google star rating logo  LT_2018-2022-1  Spring EQ top-ranked Best Home Equity Lenders at Bankrate logo  Equal Housing Lender logo  Better Business Bureau A+ rating logo
 

 

Linkedin Logo  Instagram logo  facebook logo  twitter logo  tiktokfooter
 

1 West Elm St, Ste 450 Conshohocken, PA 19428-4152, 888-978-9978


 

NMLS Consumer Access   |   Legal   |   Terms   |   Privacy   |   E-Sign   |   CA Residents   |   Careers  

    *Details to note:
    Spring EQ customers get their cash on average in 21 business days, and as fast as 14 days. This average time is measured from the time we receive all requested documents and assumes your stated income, property and title information provided in your loan application matches your documents and any supporting information collected. The time period calculation to get cash is based on the average funding turn times over the first four months of 2023, assumes the funds are wired, excludes weekends and excludes the government mandated disclosure waiting period. Typical applicants are required to provide a current and valid completed application, proof of income, mortgage statement, home hazard insurance, and a photo ID.

    Applicants are typically not required to provide proof of assets, and proof of income may be more extensive for self-employed borrowers. Quarterly, we calculate The Spring EQ Cash-In-Pocket Index™ which is the average reduction of our customers debt payments where at least one debt was paid off with loan proceeds. The most recent Cash-In-Pocket Index™ reported a reduction in debt payments of $530.

    Any pre-qualification or “Home EQ” value is in no way a pre-approval, indication of eligibility, or binding underwriting decision.

    All borrowers will be required to meet Spring EQ's current underwriting guidelines including verifications of applicant’s credit profile, debt-to-income ratio, and home’s current value. Eligible Home Equity Loan borrowers must have a FICO score of 640 or greater and debt-to-income ratio of 50% or less. Refinance transactions may increase total finance charges over the life of the loan. Speak to a loan officer for details. Eligible Home Equity Line of Credit borrowers must have a minimum FICO score of 640 and debt-to-income ratio of 45% or less. Spring EQ offers Home Equity loan options up to 95% of your home value for qualified borrowers with a credit score of 700 or greater excluding second home or investment properties. The maximum Home Equity loan or Home Equity Line of Credit amount Spring EQ offers is $500,000.

    For details, call 888-978-9978 to speak to a licensed Spring EQ Loan Officer. Please Note: Any reference to news organizations or outlets and/or their logos or likenesses on these webpages are solely in reference to the inclusion of relevant home equity, mortgage or interest rate subject matter in current, publicly available national news items and cycles and are not meant to imply endorsement of Spring EQ in any way.