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Home Equity Loan

A home equity loan is a secondary mortgage behind your existing loan!  It allows you to cash out equity for a variety of purposes including financing renovations or consolidating higher interest rate debt.

This loan is available on a primary or secondary residence in the DMV.  Your existing mortgage plus the new home equity loan can finance up to 89.99% of your home value.  Maximum financing is limited to 70% if your property is a condominium. Loan amounts can be up to $1 Million provided you have sufficient equity.

Imagine you have a home mortgage at a below-market interest rate. Let’s say you owe $400,000 on a home worth $600,000.  Your current mortgage rate is 4%.  You could pursue a home equity loan for ~$135,000 behind your existing mortgage and then utilize those funds for whatever purpose you see fit.

This is a fixed rate loan and can be 15, 20, 25, or 30 years long. A home equity loan is a fixed interest rate and is a principal and interest payment.  You pay your loan down each month, and the shorter the loan term the quicker you pay it off.

A home equity loan differs from a home equity line of credit. With a HELOC, you make interest only payments for ten years and can borrow and pay back the line of credit in that initial ten year period. After ten years, the HELOC converts to a 20 year principal and interest payment. For more info on a HELOC see https://www.alexjaffe.com/heloc

If you’re interested, please reach out to me and I’ll be glad to help!

Pre-Qualify Now: https://ajaffe.firsthome.com/startapp

[email protected] 240 – 479 – 7658

 

Alex