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• HELOC & Equity

  What's the difference between a HELOC and a home equity loan?

  Both are second mortgages that let you borrow against your equity without touching your first mortgage. A home equity loan gives you one lump sum with a fixed rate and payment; a HELOC is a line of credit you can draw from as needed. The HELOCs The Mortgage Advisory arranges blur the line: you can choose a fixed rate, and payments cover principal and interest from day one.

• HELOC & Equity

  Is a home equity investment (shared-equity agreement) better than a HELOC?

  Usually not, if you can afford a monthly payment. A home equity investment (also called a shared-equity or home equity agreement) gives you cash now with no monthly payment, but you repay it with a share of your home's value later, which can cost far more than a HELOC if your home appreciates. The Mortgage Advisory will compare the likely payoff of each so you can see the real price.

• Debt Consolidation

  I'm a homeowner with credit card debt. What are my options to pay it off?

  As a homeowner, you have more options than most people: balance transfer cards, a personal loan, a debt management plan, and your home equity through a HELOC, home equity loan, cash-out refinance, or, if you're 62 or older, a reverse mortgage. At The Mortgage Advisory, we steer people toward the option that lowers their Life Rate, the blended rate on everything they owe, and their total cost.

• HELOC & Equity

  What credit score and debt-to-income ratio do I need for a HELOC?

  Requirements vary by program, but many HELOCs look for a credit score in the mid-600s or higher, a debt-to-income ratio under roughly 45% to 50%, and total mortgage debt at or below about 80% of your home's value. Better credit gets better pricing. The Mortgage Advisory will tell you honestly where you stand, and which program fits, before anyone does a hard credit pull.

• HELOC & Equity

  Should I use a HELOC to pay for home improvements like a renovation, new roof, or ADU?

  Often, yes. For homeowners with equity and a low first-mortgage rate, a HELOC is usually one of the lowest-cost ways to pay for a renovation, a new roof, or an ADU, and the interest may be tax-deductible when the money improves your home. Just know the home is valued as it is today, not after the work. The Mortgage Advisory helps homeowners in California, Texas, Florida, and Colorado size the line to the real project budget.