Massachusetts Home Equity Loans
Homes with stunning views on Cape Cod (02648) to the historical and industrious city of Boston (02210) provide fabulous opportunities for homeowners to tap into their home’s equity to finance a variety of projects and endeavors. Second mortgage products in Massachusetts include both home equity loans and home equity lines of credit (HELOC). A home equity loan acts as a traditional mortgage loan; offering a fixed rate and a pre-determine repayment policy. Home equity loans are typically used to fund home improvement and repair projects or for debt consolidation. A home equity line of credit (HELOC) is desirable for those who need an ongoing, steady cash stream. This variable rate home equity line of credit allows the borrower to only repay the amount drawn against the line.
Another home loan option is cash-out refinancing. Cash-out refinancing is when borrowers obtain a new mortgage, usually at a lower rate, to pay off an existing mortgage. The remaining money from the new mortgage becomes the borrower’s home equity loan. This strategy is typically deployed in Massachusetts when the borrower can obtain a lower rate, but still has home equity loan needs.