Nebraska Home Equity Loans – Can You Pay Off a Mortgage with a Home Equity Loan?

March 16th, 2022 by admin Leave a reply »

Home appreciation values in Nebraska have increased by an average of 22.5 percent in the last five years. This means that if your home was worth only $100,000 five years ago, it is now worth $122,500. You’ve built equity! If you have paid down your mortgage during this time, you may want to consider using a Nebraska home equity loan to pay off the balance.

Can You Do That?

Absolutely! There are many people who have taken this avenue. You can choose to do anything you want with a Nebraska home equity loan–and that includes paying off your mortgage. In fact, it may be a better choice for you financially than refinancing or staying with your current mortgage.

Why Use a Home Equity Loan

You may be wondering why it would be better to use a home equity loan rather than keeping your current mortgage or getting a refinance. It all boils down to the rate and cost of the loan. Nebraska home equity loan rates average 7.61 percent. If this rate is less than the rate you pay on your current mortgage, a home equity loan will be better for you. It is also much less costly than a regular refinance.

Finding the Right Home Equity Loan

Using a Nebraska home equity loan to pay off your mortgage can be a smart financial move, but you have to get a good deal on the loan. Otherwise, it won’t be worth the time and effort. To make sure you get the right home equity loan, you’ll want to contact several lenders. All of them will have different programs, rates, and loan terms to choose from. By making comparisons, you can easily choose the best Nebraska home equity loan for your individual situation.

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