When You Need Cash in Hand
With so much instability, so much unknown, and unemployment being so much. People are either looking for ways to get out of a financial bind or they are looking for a source of income that could never lead to a lay-off.
Homeowners and investors in need of money have the option to use the equity in their home or investment property to get cash on hand. Obviously, there is more than one way to do this, and it is not always right for each person. There are many myths and misconceptions about the process as well. Be sure to take advantage of the wealth of knowledge and resources that we at Amin Vali Consulting Group can give you in order to avoid common issues and pitfalls.
We are going to look at 3 different options for using your equity to get cash on hand and we will break them and give you some details. We do recommend discussing all this in depth with a professional like Amin Vali and his trusted associates.
If your property has appreciated in value or if you have already paid off a significant portion of your mortgage, then a cash-out refinance may be the best option for you. A cash-out refinance essentially means that you refinance your house for a loan that is larger than your current mortgage, which allows you to pocket the difference. This is usually most applicable to those who have owned their home for 10 years or more, because that way the amount of money you receive will be significant enough to be worth the effort. Investors tend to buy properties with a high potential for appreciation, so investors will most likely see an advantage with cash-out refinance since their property/properties will have increased in value due to timing/location of their purchase or any renovations they may have done at the time or purchase. Amin Vali Real Estate Investment can help new and veteran investors with their plans to refinance.
The other option is a home equity loan, which is a second loan separate from your mortgage that uses your property as collateral. Unless your financial bind is guaranteed to be temporary and you foresee financial stability in the near future, this is a risk, because if you are unable to make the payments for the loan you risk losing your property. So, a home equity loan is best for homeowners or investors that have a very temporary cash flow issue and need a big lump sum of money but are sure to be cash positive and financial stable soon after needing/using the loan.
A more flexible and slightly less risky version of the home equity loan is a home equity line of credit (HELOC). This is a lot like a credit card, you have a credit limit and you can use/withdraw as needed. Obviously, you have to be careful with interest rates. HELOCs are usually smaller dollar amounts compared to refinancing or home equity loans. They are often used for home repairs and renovations. This is great for a financially stable homeowner who has minor repairs and renovations to do or for an investor who needs a little more cash to finish renovations on a property.
Each homeowner or investor’s case is individual and different and there is no blanket solution when we need a little extra financial boost. Amin Vali Consulting Group is here to help you figure it out.
Civil Engineer, MBA, Real Estate Agent
Amin Vali Real Estate Inc.
Persian Realtor,Persian Real Estate,
Cell phone: +1 (949)220-1000
Phone : +1(310)300-0011
Web : www.aminvali.com
E-mail : email@example.com
Realtor in Zutila Inc.