Colorado Home Equity Loans

Written by Patricia Tunstall
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Colorado home equity loans are second mortgages, as are equity lines of credit, home improvement loans, and debt consolidation loans. Colorado second mortgages are simple, fixed-rate loans, except for lines of credit, which are variable-rate. As second mortgages, they have no effect on your first mortgage, and are placed second in the title to your house.

These loans are especially appealing when rates are so low, as they are currently. The big advantage is economizing, of course, and by using these loans to pay off credit card debt, you can save money. Credit card rates are high, and they are compounded daily. By getting a lower rate with simple interest, you get lower payments.

Colorado Home Equity Loans Benefits

Aside from cutting expenses, Colorado home equity loans are extremely useful for homeowners who want to remodel, make repairs, or add onto their house. Not many owners can afford to make extensive home improvements without some kind of financial assistance. These Colorado mortgage loans offer just such assistance by making the equity you have in your home pay off.

Another option is a home equity line of credit, which is a revolving credit line secured by the equity in your house. This line of credit has a variable interest rate, and the funds can be taken out as you need them. Colorado home equity loans, on the other hand, are paid out in one lump sum. A professional Colorado lender can provide more details and help to clarify the advantages of each loan.

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