Getting a Home Equity Line of Credit in California

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Californians have built up over $1 trillion in equity since 2000. For the median homeowner, that translates into about $260,000 of available financing capital. Even with flat or depreciating home prices in some areas of California, the majority of property owners still retain sizeable gains in their home’s equity.Getting a home equity line of credit is probably one of the best ways to access that built up capital. With the flexibility of a line of credit, you can borrow only what you need, when you need it.Make Good Use Of Your Home EquityHome equity is one of your cheapest sources of credit, but you don’t want to waste it. Most experts recommend borrowing against your home’s value only when you can get a better rate of return on your money. For example, adding a pool in California can add value to your property.Another good use of a home equity loan is to pay for a college education, which results in a better paying job. You may also use it for financial emergencies, like a job loss, medical expenses, or home repair.Look At All Your Lending OptionsYou have numerous choices when it comes to deciding what terms you want on a home equity loan. Lines of credits usually have a variable rate, but you have a number of choices on the length of such a loan. Some act like a credit card with minimum payments required. Others are rolled into a fixed payment after five years.Before you go searching for a loan, decide what terms would work best for your budget. Then you will have an easier time sorting through all the loan offers.Use The Internet To Get Loan QuotesCalifornia has numerous licensed lenders both in and out of the state. With the majority of financing companies online, you can quickly get accurate loan estimates. Based on your selected terms and credit score, personalized home equity quotes are just minutes.When you receive these loan offers, check out the fee structure. Often home equity loans have more hidden fees than a typical mortgage – such as for early payments or minimum balance requirements. Once you know the true cost of the line of credit, you will know which one is right for you.