Home Equity Mortgages

Home Equity LendingAt Flagstone Financial we are home-equity mortgage experts and have some of the most competitive rates in the industry.  When the State Legislator was considering Home-Equity Lines of Credit to be added to the Texas Constitution, Cary Cox was interviewed on the news due to his expertise and understanding of Texas Home-Equity laws.

Home-Equity loans are mortgages that allow you to take out equity in your home or get cash-out from the equity in your home.  There are some restrictions in Texas such as you cannot borrow more than 80% of the value of the home, it can only be refinanced once a year, and you can only have one home-equity loan at a time.

The proceeds from Home-Equity mortgages can be used for any purpose though we feel they are best used for the following: home improvements, paying off loans or credit cards with higher interest rates, sending yourself or your children to college,  acquiring another property, and tax liens. We don’t recommend taking out a home-equity loan to pay for a vacation or a shopping spree.

You can either secure a home-equity loan or a home-equity line of credit against your home. The home-equity loan is closed-end with a set number of fully amortizing payments. The home-equity line of credit is open–ended in so that you can increase or decrease the amount of money that you access out of the equity in your home. It is more like using your home’s equity as a credit card.

There are advantages and disadvantages to each type of  these mortgages. Your needs such as amount needed, length of time needed to repay the loan, and use of funds will determine whether the home-equity loan or home-equity line of credit is best for your needs.

Call us today and we can discuss your needs and recommend the best option for you.