Home equity loan interest rates are considerably lower than those
associated with other borrowing types. By using the equity you’ve
established through years of hard work and payments, homeowners can
take advantage of interest rates far closer to the prime rate than any other
option.
Home Equity
Everyone knows that a home is one of the biggest investments most
people will make in their lifetime. What many don’t realize is that as they
make mortgage payments, their home equity is increased. Equity is the value of the
home minus any outstanding mortgage amount. The more mortgage
payments made, the higher the equity in your home becomes
Cheap Borrowing
Attaining a loan from a financial institution or credit card company is
easy for any homeowner. The problem is the high interest rates. The reason
that interest rates for credit cards are so high is that there is no
collateral, which makes it risky for lenders. The higher the risk, the higher
the interest rates. By using your home equity as collateral, the risk to
lenders is much smaller, so much lower interest rates are possible.
Make an appointment with a reliable and
trustworthy lender today at
Canadalend to learn how the equity you have built up in your home
can be a valuable asset in the quest for lower interest rates. It’s a simple
call that can open countless doors and lead to a more stable financial future.