While credit guidelines have been significantly tightening when it comes to refinancing or equity takeouts, you can however still unlock up to 80% of the value of your home for a variety of purposes including debt consolidation, re-amortizing your mortgage with lower payments, and for investment purposes. If you have a great first mortgage and/or high prepayment penalties, sometimes a 2nd mortgage can also work well for these purposes. There are a lot of different scenarios and every situation is unique, Alan is able to thoroughly analyze your situation, make recommendations, and put the right products and solutions into place.
While home equity can be a good thing, if you are carrying more expensive debt, have home improvements, or have other productive financial needs including starting or funding a business, or buying another asset or investment, a mortgage on your residence or investment property will always be your least expensive debt obligation, and can be a valuable financial tool when used properly.
