Home Equity Loans for Homeowners

Putting off house repairs? Need a vacation? Trying to get out of debt? Your home's equity can work for you. A home equity (or cash out) loan allows you to leverage the amount you have invested in your home through a fixed-rate mortgage or a variable-rate mortgage.

Home equity loans are distinguished from other non-secured loans or credit card loans by their tax savings. You will often pay much less interest than that charged by your credit cards or other unsecured loans. Use your home equity loan for just about anything:

Pay for college Buy a car Consolidate your debts Reduce your payments	Pay bills Buy another house Start a business Buy a luxury item

Royal United Mortgage offers home equity solutions as an option to simplify your financial life.

Royal United is your home equity loan expert.

Conforming mortgages:

Your lowest cost mortgage is generally a conforming mortgage loan. It meets certain criteria that make it attractive to be purchased on the secondary mortgage market by government-sponsored Freddie Mac or Fannie Mae. For this reason, these loans are less costly to you. The conforming loan amount limit changes and varies depending on whether the mortgage is for a single-family home, two-family property, etc. A higher loan amount (called a "jumbo" loan) is outside the conforming criteria, resulting in a higher interest rate to you of one-quarter to one-half of a percentage point.

Second mortgages:

Second mortgages include home equity loans and home equity lines of credit (HELOCs). In the case of borrower default, the lender holding the second mortgage will be paid second, after the first-mortgage holder is paid. A second mortgage can be adjustable or fixed rate, just like a first mortgage. Usually a second mortgage is for a fixed-dollar amount and is payable in monthly installments. Because it is a secured debt, a second mortgage offers a lower interest cost than other types of loans.
A HELOC is a line of credit secured by your home's equity. It is an adjustable rate mortgage. It is accessible as you need it, such as for college tuition or home improvements staggered over a period of time. A HELOC needn't be a second mortgage; if you own your home free and clear, you can set up a HELOC for your financial needs.
In today's roiling financial markets, mortgage lenders have tightened up credit for second mortgages. The good news is that rates are down.

Contact Royal United for your home equity loan quote. There's no obligation.