As costs for college tuition continue to rise and mortgage rates remain at historic lows, borrowing from home equity is now a practical and popular solution for many families.
SCOTTSDALE, AZ June 8, 2016 (PRWEB) June 16, 2016
As costs for college tuition continue to rise and mortgage rates remain at historic lows, borrowing from home equity is now a practical and popular solution for many families. Jeff Miksta, of V.I.P. Mortgage in Scottsdale, AZ, was recently interviewed in Forbes magazine and provides three ways parents can access their home equity to help pay for their childrens’ college expenses:
1. A Home Equity Line of Credit (HELOC) – This line of credit is extended to the homeowner using the property as collateral. Interest is charged on the loan balance, which is variable and tied to the current prime rate index (currently Prime is at 3.5%) plus a margin set by the lender. A HELOC is often used as a short term solution as they typically have a 10 year draw period and an additional 10 years to repay.
2. A Home Equity Loan - Also referred to as a closed end or fixed rate 2nd mortgage. Monthly payments generally include principal and interest payments. Rates tend to be higher than that of a conventional first mortgage, and terms vary. Most often you will see 10, 15 or 20 year loan terms.
3. A Mortgage Refinance - There are two types of options to refinance your home – A Rate/Term Refinance or a Cash-Out Refinance. By extending the loan term and lowering the interest rate, in a rate/term refi, you can increase cash flow on a monthly basis to help save for the future. A cash-out refinance provides access to home equity in a lump sum.
To read the full article visit http://www.forbes.com/sites/troyonink/2016/05/31/three-ways-to-use-home-equity-to-pay-for-college/#2a5493de2954 or download the full article as a PDF from http://www.vipmtginc.com/wp-content/uploads/2016/06/Three-Ways-To-Use-Home-Equity-To-Pay-For-College-Forbes.pdf.
About V.I.P. Mortgage and the Miksta Team
Founded in 2006, V.I.P. Mortgage, Inc., based in Scottsdale, AZ, is a mid-size, full service mortgage lender with more than 300 employees and is licensed in 13 states. Jeff and Steve Miksta have more than 15 years of mortgage experience serving the needs of homebuyers throughout Arizona, California, Colorado, Illinois, Texas and Wisconsin.
For more information or to get started, go to https://themikstateam.vipmtginc.com/ or call (480)336-2994.
Media Contact: Jeff Miksta, (480)336-2994. NMLS #1366595.
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