| If you are a consumer who owns a home, then you | | | | changing plans. HELOC's can improve cash flow |
| might be tired of getting mortgage solicitations to | | | | because only the interest is due on the portion of the |
| refinance your mortgage. Most likely, you are a savvy | | | | line that you actually accessed. This offers a financing |
| homeowner who locked into a 30-year mortgage a | | | | arsenal for borrowers needing cash on a whim for |
| few years at 5% with a fixed interest rate loan. You | | | | investing, and purchasing rental properties. A |
| may be wondering why these mortgage lenders and | | | | homeowner armed with a home equity line of credit |
| brokers think you would be interested in refinancing | | | | protects their family with a safety net of cash |
| your 5% loan with a 6.5% mortgage rate. Mortgage | | | | reserves in case a emergency or tragedy arises. |
| companies are blasting direct mail campaigns that are | | | | I recommend to all of my clients to establish a home |
| targeting many homeowners in Southern California. | | | | equity credit line whether they think they need it or not. |
| You may not need to refinance your 1st mortgage, but | | | | If they never use the credit line, then it never costs |
| chances are, you will want to access cash in the | | | | them a penny. There are no crystal balls in the world, |
| coming months. A fixed rate second mortgage or | | | | so you have to plan for both opportunities, and financial |
| variable home equity credit line can get you cash, and | | | | hardships. Get a second mortgage or line of credit, |
| a tax deduction without requiring you to refinance you | | | | while your credit scores are high. Why wait until you |
| low interest mortgage. | | | | are late on a bill and your credit scores are low. Take |
| Second mortgage are effective financing vehicles for | | | | the small window of opportunity, and get your finance |
| funding home construction, purchasing a second home | | | | vehicles tuned up, because when you wake up |
| or refinancing variable rate credit card debt. Home | | | | tomorrow the opportunity may have already passed. |
| equity lines of credit are convenient, for people with | | | | |