Buying a home in New Hope PA is exciting and filled with options. It’s vital for potential home buyers to understand the mortgage “lingo” as they embark down the home ownership path.
A common misconception is the difference between home mortgages and home equity loans. They are NOT interchangeable.
Here are four important points borrowers must understand about home equity loans and home mortgages.
A mortgage loan pays for the home on the front end. The borrower goes through the loan approval process and secures the loan to buy the home from the seller. A home equity loan is secured after that, as a lump sum that is based off the equity built up in the home.
As of 2018 mortgage loan interest is tax deductible up to $750,000. Home equity lines were once tax deductible, but this year more stipulations were added for the borrower to be able to deduct the interest.
Borrowers must use home mortgage loans for buying a house. Home equity loans can be used to purchase a vehicle, pay for a college education, or eliminate credit card debt.
In the case of foreclosure the mortgage loan creditor will get paid first. This leaves home equity loan creditors with more risk. As a result, home equity loans typically come with higher interest rates.
When talking about the difference between home mortgages and home equity loans, potential borrowers should understand the advantages and liabilities of both before deciding how to proceed. Talking to a professional lender is the first step in making the best decision.
Bart Cerami
Andrew Larson and Federated Lending made refinancing my home simple, and saved me a lot of money in the process. And Andy continued to assist me after the closing when I had a question regarding my local tax payment. I have already recommended him to several of my friends and will continue to do so. Thanks Andy!!
Megan Detwiler
We were happy with our experience. Initially there was a step missed that caused a slight delay, but we couldn’t be upset because it ended up getting us a lower rate overall. We were able to sign the documents in the comfort of our own home which was super convenient and appreciated. Would recommend!
Jorge Figueroa
Federated Lending Is Fantastic and Honest
This was such an easy transaction. What is probably the most stressful thing to do Andy and his Team made this absolutely seamless. Everything was done perfectly and right on time. Zero issues at the closing table and it all went exactly as it was explained. I was prepared for so many things to be a push up and there was none of it. NONE! I cannot say enough ...
Elaine Punchello
I've trusted Federated Lending multiple…
I've trusted Federated Lending multiple times for my home mortgages. They make what can be a difficult process easy to get through. I've never had a delay in a settlement because of my mortgage, which is a frequent issue with other lenders. I'll continue to use them and recommend them. Thanks!
Shawn Cannon
Second time working with Vince
Second time working with Vince. Have had nothing but great experiences. Highly recommend!!
Mike Pawlikowski
Federated Lending comes through again
Federated Lending comes through again. Tom K. and Federated Lending team helped me through the process of getting my original mortgage and now again with the refinance. They made the process very easy and I am extremely happy with the end result. I would strongly recommend if your looking for a mortgage or refinance that you reach out to the Federated Lending Team.
Kristen Katzianer
Easy process from start to finish
Easy process from start to finish. The underwriter should make more money.
Jacob Desperak
Wonderful and easy experience!
My wife and I had a very good experience with Fedlend thanks to Andy and Kathy. We couldn’t be more thankful for all the help and guidance we received along the way. Would definitely recommend to all home buyers, as we will use Fedlend for our next purchase or refinance.
Katie Novak
Federated Lending was a great mortgage…
Federated Lending was a great mortgage company to work with! We were able to ask questions and get immediate answers.
Patrick Mallon
Federated Lending has great customer…
Federated Lending has great customer service, a very knowledgeable staff, and made re-financing an effortless experience.
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