For homeowners looking to tap into the value of their property, New American Funding offers a range of home equity solutions. Whether you need funds for home improvements, debt consolidation, or other significant expenses, leveraging your home’s equity can be a smart financial move. In this blog, we’ll explore the different home equity options available through New American Funding and how they can benefit you.
Understanding Home Equity
Home equity is the portion of your home that you truly own—the difference between your home’s market value and the remaining balance on your mortgage. As you pay down your mortgage or as property values increase, your home equity grows. With this equity, you may qualify for financial products that allow you to access cash when needed.
Home Equity Solutions from New American Funding
New American Funding provides several options for homeowners looking to utilize their home equity:
1. Home Equity Loans
A home equity loan is a fixed-rate loan that allows you to borrow a lump sum based on your home’s equity. With consistent monthly payments, this is an excellent choice for homeowners who prefer predictability and want to fund large expenses like renovations or college tuition.
2. Home Equity Line of Credit (HELOC)
A HELOC functions as a revolving line of credit, much like a credit card. You can withdraw funds as needed during the draw period (typically up to 10 years), making it a flexible option for ongoing expenses. Interest rates are usually variable, but some HELOCs from New American Funding offer initial fixed-rate periods.
3. Cash-Out Refinancing
Cash-out refinancing replaces your current mortgage with a new one at a higher amount, allowing you to receive the difference in cash. This option is ideal if you want to take advantage of lower interest rates while accessing your home equity in a lump sum.
Eligibility and Requirements
To qualify for a home equity product with New American Funding, you typically need:
- A minimum of 15-20% home equity
- A credit score of at least 620 (varies by product)
- A stable income and manageable debt-to-income (DTI) ratio
Each loan type has different qualification criteria, so it’s best to consult with a loan officer to explore the best option for your financial situation.
Why Choose New American Funding?
New American Funding is known for its customer-centric approach, competitive interest rates, and personalized loan solutions. Their team helps homeowners navigate the process efficiently, ensuring a smooth experience from application to funding.
Final Thoughts
If you’re considering tapping into your home equity, New American Funding provides multiple solutions tailored to different financial needs. Whether you’re looking for a lump sum, flexible credit access, or refinancing opportunities, understanding your options can help you make the right choice for your financial future.