Cash out loans equity loans should be used strategically.    Here are some suggestions.

1) Want to buy a second home on Lake Travis?   Most second home programs require 5% down so if your current residence is only growing at 2%-3% a year consider taking you some equity out of your primary home to buy the second home by Lake Travis that’s growing between 7-10%.    Chances are prices will only increase for lake Travis so waiting to buy your second home may not be the wisest decision.  

2) Do you know your children will attend UT?   Buy their college home today-lease it out (and enjoy the appreciation) until they go to school.   For example, Let’s say you buy a $200,000 close to UT when your child is in the 8th grade. 

Assuming just a 2.5%

9th grade –$205K

10th grade–$210K

11th grade–$215K

12th grade–$220K

Freshman year–$226

Sophomore year–$231

Junior year–$237

Senior year–$243 

Then when your child graduates keep the property and continue to lease it out or sell it at a projected 43K profit.  Eliminate student loans and then some.  Your kids will need to live somewhere when they go to school it might as well be in a property you own.

3) Consolidate debt so you can reduce your average monthly expenses.   The best way to get out of debt is to have fewer bills.   Home equity loans allow you to reduce your monthly expenses so you can take the savings and focus what once went to 10 monthly bills to just one or two bills.   When you focus your money on one or two bills you reduce them much more effectively.

My personal record was helping a family save $1040/month.   Then advised them to (a)  put half of the savings in some interest-bearing account and (b) apply the other half to their new 30 year mortgage.    Now, they are on course to pay their 30 year fixed rate off in 9 years.     This is what I mean by using home equity loans strategically.   When used strategically home equity loans become the corner stone to improving your overall financial situation.

Please email me today so I can show you some options to reducing your monthly bills.    jon@mylendingplace.com