health-check
domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init
action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /nas/content/live/themortgageadv/wp-includes/functions.php on line 6121acf
domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init
action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /nas/content/live/themortgageadv/wp-includes/functions.php on line 6121Equity Based Mortgages
Navigating the complex waters of equity-based and home equity mortgages? With The Mortgage Advisors on your side, you can explore your options when it comes to these types of loans.
In many cases, equity-based mortgages present an excellent opportunity for homebuyers to realize their dreams of homeownership or for existing homeowners to access the equity available in their properties to consolidate debts, renovate or invest.
An equity-based mortgage is similar to a traditional mortgage in that it is secured against a property. However, it is granted based on the property's equity and marketability, compared to traditional income, credit, and property criteria and qualifications. These loans are available through traditional lenders if there are enough liquid assets or through alternative or private lenders if certain criteria cannot be met.
How to Qualify for an Equity-Based Mortgage?
Since equity-based mortgages do not require a standard, reliable income or perfect credit score, the criteria to qualify for this type of loan differs in comparison to other options. Here are some factors to consider:
Empowerment Through Liquid Assets: For borrowers with substantial liquid assets but irregular income streams, equity-based mortgages offer a means to leverage their financial standing to secure.
Securing an equity mortgage doesn’t come without some risks, as with any type of mortgage. For example, you risk losing your home if you fail to make mortgage payments on time. As such, carefully evaluate your financial situation to ensure you can afford the monthly payments, even if unexpected expenses arise. To explore this consideration and others in more depth, we recommend connecting with a mortgage agent, like our team, to determine whether this option is right for you.
Not to be confused with an equity-based mortgage, this type of loan allows borrowers to access the equity in their existing homes. They can borrow up to a predetermined credit limit and withdraw funds whenever necessary. The amount that can be borrowed is based on the available equity in the property and the lender’s criteria. This allows homeowners a convenient way to access funds while providing flexibility in borrowing and repayment options.
With a home equity mortgage, homeowners can leverage the accumulated equity in their homes for various purposes. The key benefits of equity-based mortgages include:
While equity lending offers a convenient avenue for obtaining much-needed finances, it is a major financial decision that shouldn’t be taken lightly. Taking out a loan against your home’s equity will increase your debt-to-income ratio, thus impacting your ability to borrow in the future.
Your application for an equity-based or home equity mortgage starts with working with our team. We’ll answer any questions you might have and ensure you have everything in order to start the qualification process.
In both cases, your home or potential home must be evaluated since these loans focus on equity. Professionals can then calculate the equity amount based on the current market value of your property.
After the home is evaluated, The Mortgage Advisors will work with you as it relates to additional documentation. After receiving this paperwork, we’ll submit an application on your behalf and negotiate the best rates and terms with the lender. Once your application is approved, our next steps include explaining the agreement to you, finalizing the offer, and facilitating the mortgage closing process.
We would love to hear your story and help you find the right financing, whether you have had challenges securing a traditional mortgage or are looking to access the equity in your home. Connect with us today!
"*" indicates required fields