Equity Release: Is It Safe?
How do I know if Equity Release is right for me?
Are you looking to release some of the equity in your home? There are a number of mortgage products that can do this. One such product is an equity release, which lets homeowners borrow money from their property and use it as they wish. Equity releases typically have terms similar to traditional mortgages, but they offer lower interest rates and more flexible repayment periods. In order to compare these two options, use equity release calculator!
Housing costs are not the only factor when deciding between a mortgage or an equity release product. Additional factors include: age, health status, income level, length of time living in the home – there may be restrictions on who can take out this type of loan if the homeowner has lived at that address less than five years, credit score, and more.
If you are considering an equity release, it is important to understand the product and make sure that it meets your needs before signing on the dotted line. Equity releases can vary in terms of interest rate, amortization period, loan term and more factors so be sure to do some research beforehand.
You need to assess your current mortgage, as well. This includes the interest rate and amortization period of your current loan, which will help you to decide if an equity release is right for you.
Benefits of equity release over mortgage also include:
Loan term can be as long or short as you need it—with some loans lasting for 30 years! You may not want a loan term over 20-25 years if you anticipate moving soon though. The longer the loan period, the higher monthly payments will be each month – this is because there’s less money being paid off on principal with these types of loans so they last much longer.