Is it time to spruce up your home? New kitchen? New bath? Paint? Siding? Flooring? Windows? Can you use the equity in your home to pay for it?
Let's look at home equity and two ways you can use it to pay for maintenance or improvement to your home.
With so many products, options, and uses, questions about home equity abound. Here are the top 5 questions we get all the time.
Topics: Home Equity FAQs
A prepayment penalty is a provision of your contract with a lender that states that in the event you pay off the loan entirely at a point prior to the final maturity date, you will pay a penalty. Penalties can be expressed as a percent of the outstanding balance at time of prepayment, or a specified number of months of interest.
Closing costs are part of the costs of setting up a home equity loan or line of credit. They are similar in nature to those you pay when you get a mortgage. Closing costs can include such things as:
- Fee for property appraisal (up to $450)
- Application Fee ($30 and up)
- Attorney's Fees (up to $550)
- Title Search (varies greatly)
- Mortgage Preparation and Filing Fees (Dependent on Municipality)
- Property and Title Insurance ($300 and up)