With the real estate market being more challenging than ever, many homeowners are being forced to take out loans to help fix up and raise the value of their properties. Vice President of Marketing for Tropical Financial Credit Union, Amy McGraw, joined Inside South Florida to explain the different types of loans you can take out and their benefits.
“If you have some major project to do around the house, then let it be on the house, because chances are you have equity in that house,” says McGraw. “My daughter bought a townhouse about a year and a half ago and her equity has already gone up 100 grand. So, it's definitely time if you have any major projects to look at your house for being that source of income.”
McGraw also explained the difference between a home equity loan and a home equity line of credit.
“A home equity loan is like a fixed-rate loan, it's like a second mortgage on your house, taking the equity, which is the difference between what your home is worth and what you still owe on the house,” says McGraw. “A home equity loan is probably the best way to go nowadays, especially with interest rates continuing to rise.”
For more information, visit tropicalfcu.com
This Inside South Florida segment is paid for by Tropical Financial Credit Union