Since a mortgage is a secured loan against real estate property, all mortgage services are essentially providing such loans to serve various purposes. The most common uses of mortgage services are for purchasing homes and refinancing homes to get better rates throughout the lifetime of your mortgage. However, may people may not have considered other uses of mortgage services to help them in their lives. Below are a few examples of other mortgage services offered throughout the industry:
- Mortgage for Debt Consolidation
- Mortgage for Investment
- Mortgage for Renovations
- Home equity lines of credits (HELOC)
Firstly, Seeking mortgage services for debt consolidation are often a good idea for those clients that have various debts at high interest rates. Since mortgage rates are at historic lows, it often makes a lot of sense to leverage the equity in your home to payoff the high-interest debts. By using mortgage services to clear the debts, it helps many home owners get to being debt free a lot sooner.
Secondly, mortgage services for investment purposes are also a good idea if you are interested in growing your investments. If you have investment goals and returns that exceed the low interest rates that are currently available, it may make sense to leverage the existing equity in the home to reap those gains. May home owners rely on mortgage services for this type of purpose especially when it comes to investment properties.
Another common use of equity is for home renovations. Sometimes the best way to upgrade and make your existing home your “dream” home is to use the available equity to make that happen. Again, low interest rates make it a lot easier for home owners to make sense of leveraging the equity to complete those renovations and in turn, increase the equity value of the home. That’s why mortgage services are especially useful for renovations and other upgrade around your home.
Although some homeowners have immediate uses for funds, others do not. For clients that would like to have the available access to their home equity at their own discretion, Home equity lines of credits are the solution for them. HELOCs are like traditional lines of credits, except offer better rates and usually higher limits because the debt is secure to the home. Many home owners opt for these mortgage services because they would like the flexibility to take and repay the debt as they please. Another reason could also be that their existing 1st mortgage is in term and penalties to break the mortgage would be to costly. Since a HELOC is usually a 2nd mortgage, it would not require homeowners to break their existing 1st mortgage and in turn, would not induce a mortgage penalty.
As you can tell by now, mortgage services are simply mortgage solutions that fit a particular need. If you have a financial need of sorts and would like to know how a mortgage solution might help you in your circumstances, please contact us today!