Home Equity Loans in St. Petersburg, Florida
St. Petersburg is a well-known holiday destination enjoyed by foreign, as well as American tourists. Having a population of 247,936, it is the 4th most heavily populated city in the state of Florida. Locally known as St. Pete, it is a city where people like to reside after retirement.
As a property owner who needs money and has accrued equity in his/her property, you can use this equity in your favor. Some people in St. Petersburg, Florida prefer to snag a home equity loan as its mortgage rates are considerably lower as compared to other means of borrowing, including credit cards or personal loans. Moreover, there are several tax benefits associated with these particular loans. Another feature that makes home equity loans more appealing is that the applicable closing costs are moderately low.
These home loans are also referred to as secondary loans as they are dependent on your primary loan. If you don’t have enough financial resources to make your monthly mortgage payments, then the first loan is paid back from the profits of any sale or investment.
Understand the Difference
A home equity loan may have the following basic types:
Home Equity Loan
This is a fixed-rate mortgage. Your lending organization will provide a lump sum amount which you will have to pay back during a particular time period. It consists of higher payments as you have to pay interest as well as principal each month. This is a feasible option if you prefer consistent monthly payments.
Home Equity Line of Credit
Having a variable mortgage rate, this is considered as a more flexible option. You may not be able to build any equity in your home if your monthly payment consists of only interest.
Browse through MortgageRefinance.com to get a clear idea of our financial offerings. Our mortgage calculators can easily outline your financial investments and resources.