American Savings Bank on the ins and outs of home equity
Sponsored by American Savings Bank
Are you thinking about tapping into your home equity, but aren’t sure how? With the current low interest rate environment, now may be the best time to get a Home Equity Line of Credit or refinance your mortgage! But how do you know which is right for you? HI Now host Kanoe Gibson is with Vice President and Executive Residential Loan Officer Reyn Sugai at American Savings Bank to learn about the ins and outs of home equity.
“HELOCs and refinances are both ways to better access the value you have accumulated in your home,” Sugai says. “They can be used to consolidate debt and even increase the value of your home by allowing you to make home repairs and renovations.”
A HELOC gives you a line of credit with funds you can use, based on the value of your home. HELOCs usually come with an adjustable interest rate, which means that if baseline interest rates go up or down, the interest rate on your HELOC will adjust too. ASB also provides a fixed rate option for HELOCs so you can lock in a low fixed rate on a portal or all of your outstanding HELOC balance.
“If you are unsure how much money you’ll need, then a HELOC gives you flexibility to draw funds as needed over the 10-year draw period,” Sugai adds. “HELOCs generally have a quicker loan process with limited closing costs, and can also be used as your second mortgage.”
A refinance replaces your current mortgage. This new loan is a great option for consolidating high interest credit card and loan debts, taking cash out with fixed monthly payments and lowering your monthly payments, especially if the refinance includes a lower interest rate than your current mortgage. Refinance can also help you pay off your loan quicker if you switch to a shorter-term loan such as a 15-year mortgage.
It’s a good time to look into one of these options because interest rates are at historic lows, which means that it’s a great time to lower your monthly payments and gain access to cash to accomplish your goals.
“If the pandemic has taught us anything, it’s that we have to be prepared for uncertainty. We also don’t know how long this low rate environment will last, so taking advantage of it now could help you in the long run,” Sugai says. “If you got your current mortgage at a high interest rate, now could be a great time to use a HELOC or refinance to reduce your rate.”
In addition, the application process may be even easier that you previously experienced. Mortgage lenders like ASB now offer online mortgage applications, which allows you to apply from the comfort of your own home. This makes the process more safe, secure and convenient. Of course, you can still apply in person with a loan officer too!
In addition to its online mortgage application and calculators, ASB also has a lot of online resources at asbhawaii.com including current rates, details on all loan products and more. Its team of helpful and knowledgeable loan officers are ready to help you anytime, anywhere. You can reach out to meet via phone or in person at one of ASB’s Home Loan Centers where they can assist you with applying for a loan or simply understanding your current situation and what works best for you.
For more information: Asbhawaii.com, Instagram: @asbhawaii, Facebook: American Savings Bank
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