With interest rates still at historic lows in 2016, and home values on the rise, there’s never been a better time in recent history to refinance your home.
For many homeowners, a cash-out refinance can open up options that let you pay down your high interest rate credit cards, improve your home and property, or even invest in a small business. Choosing a cash-out refinance is not the only way you can put more cash in your pocket though. A home equity loan from loanDepot can provide you with the ability to obtain extra funds to use for various projects.
Regardless of how you decide to put your home to work for you, here are some creative goals you can achieve with a home equity loan:
1. Consolidation of high-interest debt
One of the most damaging items for your credit report is late payments. If you are like many people, you don't acquire fees from late payments because you are irresponsible. Rather, life gets in the way or you simply have too many due dates to remember. Debt consolidation can save your money by delivering an overall reduced interest rate for debt, and enable you to streamline your monthly debts into one low payment.
2. Finance a rental property
Purchasing a rental property allows you to have a steady income stream that has the possibility to continue growing in value while you own it. Few other investments have the long-term staying power like real estate does. While your return on investment (ROI) varies on a number of factors, such as the region of the country where the property is located, whether you pay cash or finance it, the amount you put down and more, most owners who rent properties can reasonably expect to achieve between 8 and 15 percent a year, according to Investopedia.
3. Purchase a college residence
Have a child gearing up to attend college? Investing in a condo or apartment in a college town offers you numerous advantages. Not only will you save big on housing costs during the time your child is a student, your savings are maximized if all of your children attend the same school. Even if you have a gap of several years, you can easily rent your property to other college students in the area. Once your children have graduated, you can choose to continue to rent it out or sell it – in many instances -- for a tidy profit.
4. Fund a vacation spot
Whether your ideal vacation involves a beachfront condo, a mountain home or a recreational vehicle, a second home or vacation property is a fantastic way to invest your savings or home equity while diversifying your real estate portfolio. Not only does this type of investment give you peace of mind and allow you to recharge, such an investment can offer an attractive return should you decide to sell at a later date.Ready to achieve your goals? Call today and to get a quote on a home equity loan or cash-out refinance loan from loanDepot.