Whatever you need money for, you can benefit from the low interest rates and potential tax advantages of home equity lines of credit and loans. The three most popular uses of home equity accounts are to finance home improvements, consolidate bills, and make big purchases.

Home improvements
Many homeowners access their home equity to pay for remodels and other home improvements everything from a new kitchen or bathroom to a series of repairs and upgrades.

Ready to make home improvements?

• Call a home equity expert at 1-800-800-6512 for a no-obligation consultation.

Consolidate bills
You can also use your home equity to combine all of your high-interest bills into a single, more manageable monthly payment. You can increase your cash flow by lowering your monthly payment and since it’s easier to keep track of just one bill more effectively manage your finances.

If you’re paying high interest rates on outstanding balances, consolidating your bills with a lower-rate home equity line of credit or loan could significantly reduce the amount of interest you pay over time.

When you apply with IAM Loans Home Equity, just let us know which bills you want to consolidate, and we’ll pay your creditors on your behalf.

Ready to consolidate your bills into one easy payment?

• Call a home equity expert at 1-800-800-6512 for a no-obligation consultation.

Big purchases or expenses
Lower rates and potentially tax-deductible interest can make home equity financing a less expensive option than a traditional loan. So a home equity line of credit or loan is also a good way to finance large purchases or expenses such as:

• A new car
• College tuition or other education expenses
• Medical expenses
• A life event (wedding, baby, retirement)
• Taxes
• Investment opportunities

Ready to finance a big purchase?

• Call a home equity expert at 1-800-800-6512 for a no-obligation consultation.

Selecting the right mortgage is central to the home buying process that's why it's so important to understand your options. You'll need to consider two things at the outset: which loan type best meets your home buying needs, and which loan term offers the ideal repayment schedule.

Loan Types

Most home loans fall into one of two general categories: fixed-rate mortgages and adjustable-rate mortgages (ARMs). You'll also encounter other basic loan type such as government loans and flexible credit solutions programs.

• Fixed-rate mortgages have interest rates that stay the same for the entire life of the loan.
• You will have predictable monthly payments throughout the life of the loan.
• You'll be protected from rising rates, so your principal and interest payments can never increase, no matter how high interest rates rise.
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• Adjustable-rate mortgages have interest rates that adjust periodically based on market conditions. The initial rate is fixed for an introductory period (usually one to ten years), and is typically lower than for a fixed-rate mortgage. After that, the rate adjusts annually based on a market index, but can't go above a predetermined adjustment cap. Because of the lower initial rate, some borrowers may be eligible for a larger loan amount with an ARM than with a fixed-rate mortgage.
• Government loans are offered by conventional lenders like IAM Loans Home Mortgage, but insured by the federal government. They come in two types: FHA and VA.
• FHA loans are backed by the Federal Housing Administration, and are designed to assist low-to-moderate income homebuyers by offering low down payment requirements and flexible qualifying guidelines.
• VA loans are backed by the Department of Veterans Affairs (formerly the Veterans Administration), and are available to qualified veterans and active-duty military personnel and their spouses. They offer many of the same features as FHA loans.
• Flexible credit solutions programs are designed for borrowers with less-than-perfect credit histories, excessive debt, or previous bankruptcy, foreclosure or tax delinquency.

Loan Terms

The “term” of a loan is the period of time you will spend repaying it. The most common loan term is thirty years, but you have other options as well, including twenty, fifteen, or ten years. Whether you'd be better off with a longer loan term or a shorter one depends on a number of factors, most notably your monthly income and long-term financial goals.

• Longer mortgage terms offer lower monthly payments, and are a good option if you're on a tight budget or would prefer to direct your monthly cash flow toward other investments or expenses.
• Shorter mortgage terms mean higher monthly payments, but allow you to repay the loan faster and save money on interest.

Whatever loan type or term you choose, IAM Loans Home Mortgage offers a wide variety of product options to meet your unique home buying needs. Our home mortgage consultants can help you find the right combination of loan features to support your financial goals. Contact us to get started today!

• Call a home Purchase expert at 1-800-800-6512 for a no-obligation consultation.

When you refinance your mortgage, you're actually replacing it with a brand new loan. In doing this, expect to go through a mortgage application process similar to what you experienced with your original mortgage. Refinancing is often a sound financial choice that can allow you to meet a variety of needs:

• Reduce your monthly payments by taking advantage of lower interest rates or extending the repayment period.
• Reduce your interest rate risk by switching from an adjustable-rate to a fixed-rate loan or from a balloon mortgage to a fixed-rate loan.
• Reduce your interest cost over the life of your mortgage by taking advantage of lower rates or shortening the term of your loan.
• Pay off your mortgage faster (accelerating the build-up of equity) by shortening the term of your loan.

Rate-Term Refinance vs. Cash-Out Refinance

A rate-term refinance has a loan amount that is just enough to repay the balance of the existing mortgage. The purpose of the loan could be either to reduce your interest rate, adjust your loan term, or both. A cash-out refinance, on the other hand, has a loan amount that exceeds the current mortgage balance. The difference is converted to cash proceeds given to you at loan closing, which you borrow against the equity in your home.

A Good Rule of Thumb

A good rule of thumb is that if interest rates are 1/2% to 5/8% lower than your current interest rate, it may be a good time to consider a refinance.

The Right Time to Refinance

Many homeowners consider refinancing when interest rates suddenly fall or there's a change in financial circumstances. But even though a large decline in rates or an opportunity to pay off debts might make refinancing seem like an easy decision, you shouldn't consider any single variable on its own. Think about how long you plan to stay in your home, how you plan to use your equity, and how a refinance will support your overall financial goals.

Call a home refinancing expert at 1-800-800-6512 for a no-obligation consultation.