whether referring to the nation's capital, Washington DC or the District of Columbia - both names evoke part of the country that stands out. Most houses in Washington, DC metro area including the District of Columbia, Maryland and Northern Virginia has a lot of equity in their homes due to an astronomical increase in home values.
In some cases, homeowners who are having new homes built, saw a 10% or 20% appreciation in the value of their home before they even moved into their new homes. Even though the appreciation in home value has stabilized somewhat, there is still a large untapped capital.
The persistence of low interest rates available, homeowners can take advantage of the equity in their homes to finance their children's education, wedding, home improvement projects, continuing education, travel, credit card debt consolidation, etc. Whatever the reason may be after the equity in your home is a good thing and can help you navigate the rough patches.
Types of refinance loans.
cash out refinance - cash out refinance loan replaces an existing mortgage loan with a new mortgage loan. These loans are good for homeowners who prefer to take cash out of their homes, but still has just one mortgage loan.
home equity loans - home equity loan is a second mortgage loan that allows you to get cash from your home and make fixed monthly payments until the loan is paid off capital
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home equity line of credit (HELOC) - HELOC is a line of credit, just like the one that your credit card company offers. You can get a credit line of $ 50,000, spend $ 25,000 from him and still have $ 25,000 left. If you back $ 25,000, your equity line of credit goes to $ 50,000. HELOCs provide flexibility and flow of credit, if you need credit lines open for unexpected expenses.
125% LTV (loan-to-value) refinance loan allows you to maximize the amount of money that you can take during the refinance process.