Need cash fast? Tap into your home equity today!
U.S. homeowners are the most “equity-rich” they have ever been, thanks to their home equity increasing over 32.2% since 1Q2021. That’s a year-over-year gain of over $3.8 trillion for the entire housing market.
This significant increase in home equity has provided many homeowners with the opportunities to cash in through home equity loans and cash-out refinancing!
Article Contents:
- Why is home equity important?
- How to access your home equity?
- Common use of funds
- Global bridging loans
Why is Home Equity Important?
Home equity is an excellent long-term wealth-building strategy. To demonstrate just how true this is, let’s compare an auto loan to a mortgage. When you take out an auto loan, you are paying interest on an asset that depreciates in value as soon as you drive it off the lot. That means that when you’ve paid off the loan, the car will most likely be worth less than your purchase price, and you will have paid interest.
In contrast, mortgage payments reduce your debt while your home increases in value. Of course, property values could drop, but that is unlikely to happen over the long term. One very financially powerful aspect of this is that you don’t need to sell your home to profit from it.
How to Access Home Equity
Equity-rich homeowners have two options for accessing their equity without selling their homes:
1. Home Equity Loan: Think of this as taking out a second mortgage for a fixed rate that must be repaid within a set period.
2. Cash-Out Refinance: This option is excellent when you’ve seen an increase in the value of your property. If you’ve just recently purchased a property, you’ll need to wait for at least 6-12 months to use the new value.
The best way to cash in on your equity depends on your goals. For example, releasing equity is a well-known way to acquire more real estate and build a portfolio.
Common Use of Funds (to name a few)
- Refinancing
- Renovations
- College tuition
- Pay off high-interest debt
- Personal business needs
- Purchasing more property (BRRRR method)
- Cash while waiting for sale
- Down-payments
- Other investments
Global Bridging Loans
Bridging loans are short-term loans, normally 1-2 years, which are used to “bridge” a funding gap where banks are unable to meet the borrowers requirements, usually – speed of funding, loan to value and certainty.
Bridging loans are based on the collateral value of the property (asset-backed) and not the borrower’s personal financials. Loans are normally “interest-only or interest-servicing only” with a bullet repayment at the end of the terms. These loans have been very popular over the past few years as retail banks have significantly reduced their willingness to lend on property (globally), and private loans (private credit) have filled the gap.
Countries We Offer Bridge Financing in:
- USA
- Canada
- UK
- Australia
- Singapore
- Hong Kong
- Philippines
- Thailand
Basic Details
- Get approved in 24 hours and funding in as fast as 7 days
- Up to 70% of your home’s value
- Available for primary homes, second homes, and investment properties
- Priority is speed of funding, certainty, and high loan-to-value
- Short-term and not meant to replace a bank loan
- No age restriction in many countries
With our fast approval process, flexible terms, and international reach, we’re here to support your financial needs. Reach out to our International Loan Officers today, and let’s turn your home equity into cash for whatever you need. Get started now!
