What is a home title loan in Missouri City?

With a home title loan, or equity loan, in Missouri City, you can take out some of the value of your home. Discover how it works, the advantages and how to qualify. Since the money is taken out of the equity in your home, your house is used as collateral and the loan is secured. This get you lower interest rates than a personal loan or other loan type, but they are typically higher than a traditional mortgage. In most cases, your credit score needs to be pretty good to qualify and the better your credit, the better the options. The repayment period is also long, so you can make affordable payments, but they're shorter than a traditional mortgage, which is usually 20-30 years. With 5-10 years, you can pay back the value of the loan at a reasonable and affordable rate.

A home title loan works similarly to a car title loans Missouri City. If you own your home, even if you're still making payments on it, your house has a certain amount of equity in it. You can access this equity to get a loan or a line of credit. For instance, if you have a $250,000 home and you owe $150,000 on it, you have $100,000 of equity.

If you were to sell the home tomorrow for its full value, that's what you would receive. If you don't want to sell, but you want some of that money, you can get an equity loan. You won't be able to take out the whole amount, because it's important to continue to have equity in the home, but you should be able to take out up a value that will leave about 10% of its equitable value. In the example above, you would be able to get up to about $75,000.

How do Home Title Loans Work?

A home title loan and a home equity line of credit are not precisely the same thing. With a line of credit, the money is supposed to go back into the house. If you intend to use the money to make renovations, like updating the kitchen or putting on a new roof or adding a bedroom, a line of credit could be the better option. But only if you don't need it as a lump sum, but plan to use it over time. On the other hand, a home title loan allows you to use the money for other things, as well. For instance:

  • Covering college tuition
  • Taking a dream vacation
  • Buying a new, working car
  • Starting up a small business
  • Paying off outstanding debts
  • Covering medical expenses

If you have a mixed bag of things the money is going toward, the Missouri City home title loan is going to be your best bet - you can use the money per your unique needs. This is especially true if you're putting the money toward something that is costly and expensive, for which you'll need a lump sum of money.

Advantages of a Home Title Loan in Missouri City

Often called a second mortgage, home title loans can have many benefits. When you talk to a qualified professional, you can get perks like:

  • Competitive interest rates
  • Money to spend your way
  • A long repayment period
  • Affordable montly payments
  • No penalties for early repayment

Getting a home title loan in Missouri City can be a great option if you're looking for a large sum of money. Don't forget to consider other options, like a car title loan, which can get you the money faster, even if it's a smaller amount, and doesn't require a credit check. If you have questions, call up to talk to a professional who can provide you with guidance, answer your questions and tell you what you can qualify for.

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