Six Lakes Realty

What Northwestern WI Homeowners should know about Home Equity Loans

Northwestern Wisconsin home equity info

If you’ve lived in your Northwestern Wisconsin home for at least a few years, you’ve
probably received offers for a home equity loan. “Equity” is the difference between what
your home is currently worth on the market, and the outstanding balance of any

Home equity loans are popular because they enable you to utilize the free-and-clear
home value you’ve attained, without selling the property. But there is a lot to know
before wading into a home equity loan!

1.Your home acts as collateral for the debt. This means if you default on your
payments, you could risk foreclosure action.

              2. Home equity loans are not free money. There are closing costs and home appraisal
              fees involved, which can run between 2% and 5% of the loan amount. Interest rates will
              vary depending on the loan amount, home value and your credit profile.

              3. There are limits to the equity you can access through a loan. Most lenders require
              that you have at least 10% to 20% of equity in reserve.

              4. Equity loans are ideal for financing major home repairs or upgrades. Think twice
              about using such loans to splurge on luxury items or expensive vacations.

              5. If you sell your home before the home equity loan is paid in full, the outstanding
              principal balance will need to be paid from your sale proceeds, along with any other
              mortgages or liens that are recorded on your property.

              Be sure understand all the loan terms and conditions before you tap your home equity.
              If you’d like to know your home value, contact us for a complimentary market valuation!

              Ready to buy or sell a home in beautiful Northwestern Wisconsin? Call us for expert
              guidance! Six Lakes Realty is a locally-owned family business with over 45 years of
              experience. Contact us today for friendly, hometown service!

              John Flor
              Managing Broker
              Six Lakes Realty
              Office: (715) 924-4806
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