Equity-Based Mortgages Tips

Did you know that you may qualify for a Home Equity mortgage without needing proof of income. That’s right, with good credit and lots of equity in your home we can get you a mortgage without needing paystubs, job letter, notice of assessment, or any other income docs. Talk to one of our mortgage brokers and find out if this type of mortgage product is for you. To begin, you must understand what equity is. Let’s say you purchased a home five years ago for $200,000. Over the past five years you have paid a significant amount towards your mortgage loan and now owe only $150,000. Essentially, you have $50,000 in equity in your home. However, this amount can vary depending on the value of your home. Home values can change over time due to the advancements in the neighborhood, recent home sales, and upgrades to the home, etc. Your home would need to be evaluated to ensure the true value and then the equity determined based on that number. There are many ways to use the equity of your current home. You can choose to consolidate debt and take the money from the equity loan and pay off all credit cards or other debts. You may also choose to use the money to complete updates needed to the home such as a new roof or flooring, even an addition. The choice is yours, with the money coming in handy for whatever you need!