January 9th, 2017 5:15 PM by Dale DiGennaro
If you own your home outright, or have a large amount of equity, you may be able to borrow against your home’s equity with a home equity line of credit (HELOC) or a traditional refinance with cash out. Even in today’s tight lending climate, well-qualified borrowers with large loan-to-value ratios can get these types of loans. But which loan is right for you?
The refinance loan takes the place of your current mortgage loan, often giving you the benefit of a lower interest rate. It pays off your old loan and replaces it with a new one; while a home equity line of credit would be a separate loan, in addition to any mortgage you have. Both loans use your home equity as collateral.
Additional differences are:
The bottom line is, you may want to choose a Home Equity Line of Credit if a lower interest rate isn’t available to you through refinancing. A HELOC may help meet your short-term needs, such as home renovation, vacation, vehicle purchase, or emergency funds. Consider a refinance/cash out option if you can get a lower mortgage loan interest, extend your payment time line, or reduce your monthly payment. These loans are generally better for long-term goals such as tuition, adoption fees, or ongoing medical expenses. And...we are currently able to do refinances with "no closing costs".
If you’re interested in accessing some of the equity in your home, give me a call at (707) 252-2700, or email me at dale@clgroup.net, I’d be glad to go over your options and provide current rates.
We'd love to help! Are you ready to fill out a loan application today? Just curious about rates? Regardless, I'd be glad to help you go over your options. Give me a call at (707) 252-2700 or visit me online.
When cooking steaks, let the steak reach room temperature before grilling. This will make the meat more tender and flavorful.
Sprinkle baby powder into the crevices along the edges of a squeaky floor board to stop the noise.
Small children don't know the difference between hot pans and cold pans. Don't let children play with pots and pans until they are old enough to understand that pans on the stove are off limits.
Rates Near Multi-Year Lows
Central bankers were the main influence on mortgage rates over the past week. The economic data caused little reaction. Mortgage rates ended the week lower, near the best levels in several years.
In a speech on Monday, Fed Chair Janet Yellen discussed the disappointing Employment report seen in May. Yellen warned against reading too much into one report and pointed out that other recent labor market data has been more positive. Job openings, wage gains, and unemployment claims are at levels consistent with continued improvement in the labor market.
However, Yellen's speech dropped a key reference to "in coming months" which had been used in an earlier speech to describe the time frame for the next rate hike. It appears that the May Employment report caused enough concern for Fed officials that they are less confident that the next rate hike will take place soon. As a result, investor expectations for rate hikes from the Fed were pushed farther into the future, which was good for mortgage rates.
Another positive factor for U.S. mortgage rates was a new stimulus measure from the European Central Bank (ECB), a corporate bond purchase program, which began this week. This new program helped push bond yields in Europe to record low levels, which made U.S. bonds relatively more attractive to investors. This was evident in the high demand for U.S. bonds seen at this week's Treasury auctions. The added demand for U.S. bonds helps keep yields low in the U.S., including mortgage rates.
Looking ahead, the next Fed meeting will take place on Wednesday. No change in rates is expected, but investors will be looking for hints about the timing of the next rate hike. Before that, the report on retail sales will be released on Tuesday. Consumer spending accounts for about 70% of economic output in the U.S., and the retail sales data is a key indicator. The Consumer Price Index (CPI), a widely followed monthly inflation report, will come out on Thursday. The report on housing starts will be released on Friday.
Considering a new color palette for your home but having trouble visualizing that pretty shade of burgundy or teal in your room?
Sherwin Williams has a color visualizer tool on their website. Just take a photo of the room you're considering painting and upload it to their website. Once uploaded, you can highlight which areas you'd like to see painted then begin picking swatches and see what you get! Check it out at Sherwin-Williams.com.
Benjamin Moore has a similar color selection tool, where you can upload your own photo, and then select from colors that would fit in your room.
Have a color you love from a treasured item? Large hardware stores like The Home Depot and Lowes often have color matching machines in their paint departments. The machine reads large, non-reflective, flat items like fabric, carpet pieces or tile squares best.
Sherwin Williams also has iPhone and Blackberry apps that allow you to take a picture of a color you love and help you to match it to one of the colors they have available.
Note: These visualizer tools are not particularly easy to use. Also, many other websites offer the visualizer tool, but make you pay for the CD or the download.