Is A Home Equity Line of Credit (HELOC) A Good Fit For You? – Stress Free Mortgage

At Stress Free Mortgage, we helped many clients refinance their home loans when interest rates were 3% and below. With inflation increasing the cost of living and credit card interest rates over 25%, homeowners may need to get out some of the equity in their home. However, many of them don’t need to do another refinance and are looking for other options, such as a 2nd mortgage. Second mortgages allow you to pull equity from your house without refinancing your first mortgage and although the rates are higher, many times it makes more sense to access accumulated equity in this manner.
Although your local bank or credit union may have some good rates or lower fees, there are other options for those who are self-employed, have credit issues, or income restrictions. At Stress Free Mortgage, we can review your current situation and help you decide which refinance option is the best choice.
One of those options is to utilize bank statement deposits from your business to use as income to qualify for the mortgage. This is more commonly used for first mortgages, but there are more lenders using this way to verify income for second mortgages as well. Although the minimum loan amount is higher at
$100,000, this option is great for self-employed borrowers whose tax returns don’t reflect much income after deductions.
There are also a few second mortgage lenders that will use AI in order to evaluate a loan with both income and also with the value of the home. These loans do not need documentation from you as the AI evaluates the loan through your bank deposits directly.
Contact us today to discuss the many options for both refinances and home equity line of credit loans.Please call our office if you have any questions: 661-295-0555.