Equity – How Do I know If I have Enough Equity In My Home to Use!
How do i know if I have enough Equity in my home to take out and payoff other debts? The general guidelines allow you to take out up to 80% of the appraised value of your home to payoff debts, invest or use as you choose. You first need to figure out what that number is, take off the amount owing on your home and the rest is usable equity.
As an example you have a property worth $400,000 so 80% of that is $320,000. You have a mortgage for $300,000 so that means you have $20,000 extra that you can use to payoff those other debts. It is a great way to use very low interest rates and a secured loan like a mortgage that is amortized over 25 years maximum with the result you have lower payments than if you kept the unsecured debt.
As Mortgage Brokers we have access to a variety of Mortgage Lenders to assist us with getting you the best mortgage or secured line of credit possible. Even though we are Red Deer Mortgage Brokers we can still assist you in other areas of Canada as well with a variety of loans, mortgages, secured lines of credit and much more. Your property could be an acreage, or even a newer mobile as long as on its own lot.
If you have larger credit owing and need to consolidate to keep your payments reasonable taking equity out of your home could be a great option.
Call Brenda or Jessica to discuss 403-347-0774