Home equity loans allow home owners to get a loan using the equity on a house as collateral. The home equity loan calculator online is to calculate the monthly premium you would be paying back on this kind of finance.
Home equity loans in South Africa are available at:
- Standard Bank
- SA Home Loans
To name but a few.
Calculations by the home equity loan calculator online are usually only estimates at best.
So it is more advisable to speak to a bank or financial loan advisor. To get a more accurate quote according to your financial circumstances and equities.
You can apply for these loans as a lump sum. Or also as a revolving home equity line of credit. Which could offer you a large amount of cash at comparatively low interest rates.
There are also some tax benefits associated with a home equity line of credit. That are not available with most other types of loans.
Home Equity Loans Security
As with most secured loans, a home equity loan requires property to be pledged as security for a loan.
Therefore if you default on payments or even if you are late on a few occasions you may well be putting you and your family’s home in jeopardy.
Compare home equity loan rates from one lender to another to ensure you get the lowest rates available on the market.
These types of loans are often also referred to as a second mortgage or refinancing your home.
So if the lender you are speaking to about a home equity line of credit is having difficulty understanding your needs, use the term “second mortgage” instead.
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Expenses that a home equity loan is often used for include:
- Debt consolidation
- Home repairs
- College funding
- Expensive medical bills
- To buy a new car
- Building materials
Do your research and educate yourself on the different types of home equity loans or home refinancing in South Africa. Try your best to find the financial institutions that offer the best interest rates.
With a little patience and searching you will soon discover a plan to suit your needs. And a home equity loan with interest rates to suit your pocket.