Home Equity Loans are Officially Back in Style
According to The Wall Street Journal, home equity loans are back in style and we are all about it. Here is everything you need to know about home equity:
What is a home equity loan and why is it popular again?
A home equity loan allows homeowners to use their home as leverage in order to finance large purchases or expenses. By using this type of loan, you are able to borrow against the value of your home for a limited amount of time, set by an agreement between you and your private lender. Interest on Home Equity Loans (HELOCS) is usually tax deductible.
The reason why a home equity loan is once again becoming popular in Coastal California is due to the increase in real estate prices. Because home sales are up 40 percent since 2014, it is a great time to consider a home equity loan or home. Study a guide to VA home loans benefits in 2019.
What are the benefits of home equity?
Low interest rates are one of the many benefits of home equity loans. Private lenders are more likely to give you a home equity loan over other types of loans because it is secured by the value of your home. This makes it less risky which, in turn, means lower rates than other types of loans.
Potential tax deduction is a huge benefit of home equity loans. Although we advise that you discuss this with your CPA first, 100% of our interest payments may be tax deductible when you open a home equity loan.
Another benefit of home equity loans is that it is a lump sum that you can pay off with cash. You can use this type of loan for one-time purchases or major projects that will increase the value of your home.
Why would I need a home equity loan?
Home equity loans are great for home improvement. Whether you are adding another bedroom to your house or want to redesign your kitchen, a home equity loan is a great way to invest in the value of your Southern California home.
Home equity loans are also great for debt consolidation, especially if you are paying higher rates on multiple credit card bills. They typically have lower interest rates than credit cards so you can save hundreds, and even thousands, of dollars in the long run.
Big life events, such as a wedding or starting a new business, can be good reasons for a home equity loan. These type of loans can be great for accessing your equity to improve your life or business.
If you want more information on home equity loans in Los Angeles, Orange County, or San Diego, call the experts at JCAP Private Lending today. We can get you squared away with a loan that is just right for you.
About Jcap Private Lending
JCAP Private Lending is a Direct Lender who closes and services Investor Funded Short-Term Real Estate Loans. Our experienced team has been providing quality mortgage services for over 30 years. JCAP Private Lending is an Asset Based Lender who steps in to quickly solve a short-term financial need secured by Real Estate. JCAP has an innovative approach to lending, focusing on speed, simplicity, and safety for borrowers and investors. JCAP’s operating philosophy is defined by the simple but impactful statement — “We Care & We Serve”.
Located in Newport Beach, CA, JCAP Private Lending primarily lends Hard Money & Private Loans secured by 1st & 2nd TD’s on residential property in Coastal California.