Q: What type of loan (equity line of credit or loan) would be better to take out to pay off credit cards and do minor home improvements on an investment property? Total debt is $87,000 and have 2 credit scores over 710.
A: There are a few ways to use equity from your home to pay off debt and make home improvements. A home equity line of credit is a variable rate, and is tied to the Prime Index Rate. Or, a conventional loan with an equity refinance would provide a fixed rate. There are many mortgage options available depending on the product that will best fit your needs. It would be best to complete a complimentary consultation, which would involve a mortgage pre-approval to determine which product makes the most sense for your situation.
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