by Frank Fannon IV, SunTrust Mortgage Inc.
If you are a homeowner in the greater Alexandria area chances are you have equity in your property. Equity is defined as the difference between the value of the home and the balance on any loan or loans secured by the property. Example, if your home is worth 500k and you owe 300k on your loans you have 200k in equity.
During the economic downturn many people applied for equity lines when they lost a job or their property value was dropping. Unfortunately these are the times when lines cannot get approved. The time to get an equity line in place is when you do not need the money but can qualify. An equity line can be viewed as a safety net.
Most banks will approve the line when you are working and have decent credit. There are traditionally no closing costs with an equity line and rates change with the prime rate. Most lines have a 10 year draw period which means once the line is approved you can walk in the bank anytime over the next 10 years and withdraw your some or all of your approved funds.
If you don’t have an equity line and feel you are qualified you should inquire about one so your safety net is in place. The only people who should not have an equity line are borrowers who are undisciplined and may spend money just because it is available. 2016 is right around the corner and a new equity line might give you piece of mind if and when you meet a challenging financial time.
Specializing in residential loans and refinancing transactions, Frank identifies customer needs and goals from the start and consistently exceeds customer expectations. Put Frank's dedication to work for you. Phone: 703.838.2519 Email: frank.fannon@suntrust.com
If you are a homeowner in the greater Alexandria area chances are you have equity in your property. Equity is defined as the difference between the value of the home and the balance on any loan or loans secured by the property. Example, if your home is worth 500k and you owe 300k on your loans you have 200k in equity.
During the economic downturn many people applied for equity lines when they lost a job or their property value was dropping. Unfortunately these are the times when lines cannot get approved. The time to get an equity line in place is when you do not need the money but can qualify. An equity line can be viewed as a safety net.
Most banks will approve the line when you are working and have decent credit. There are traditionally no closing costs with an equity line and rates change with the prime rate. Most lines have a 10 year draw period which means once the line is approved you can walk in the bank anytime over the next 10 years and withdraw your some or all of your approved funds.
If you don’t have an equity line and feel you are qualified you should inquire about one so your safety net is in place. The only people who should not have an equity line are borrowers who are undisciplined and may spend money just because it is available. 2016 is right around the corner and a new equity line might give you piece of mind if and when you meet a challenging financial time.
Specializing in residential loans and refinancing transactions, Frank identifies customer needs and goals from the start and consistently exceeds customer expectations. Put Frank's dedication to work for you. Phone: 703.838.2519 Email: frank.fannon@suntrust.com
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