Frequently Asked Questions

Your mortgage is not only a method of gradually taking complete ownership of your home, but also a financial tool that can assist you in increasing the value of your home. Remember that as you continue to pay your mortgage, you gradually increase the equity you have in your home. So whether you'd like to explore your passion for home decor or remodel a bathroom, a mortgage could help you accomplish it. Here are some of the most frequently asked questions related to home mortgages and using equity wisely.

What is SalinasHome.com?

SalinasHome.com is a service that helps put homeowners in contact with the mortgage lenders who have the products and services they personally need. Whether you're looking to take out a new mortgage, refinance your existing mortgage or explore the opportunities provided by a home equity line/loan, SalinasHome.com can put you in contact with the lenders who meet your needs. Simply fill out the informational form on the site to get started. By providing basic information, you'll be put in contact with the lenders who can best assist you.

What can I do with my home's equity?

For the most part, anything! Your home equity is yours - it's the value of your home that you own, free and clear. While it can be risky to use home equity haphazardly, you can manage your home equity effectively and, possibly, increase the value of your home. Many homeowners who have at least 20 percent equity in their homes take out new mortgages, refinance or get an equity line to complete a kitchen or bathroom remodel, or to finish landscaping their yards. If you improve your home's value, you should be able to realize a return on your investment.

Is it always safe to use my home equity?

No. You should be very careful about using your home equity for other purchases - particularly if you don't have a lot of equity in your home to begin with. Remember that you will likely need to have at least 20 percent equity in your home to avoid the cost of mortgage insurance. As a rule of thumb, you should try to maintain at least 25 or 30 percent equity - because fluctuations in your local real estate market can quickly affect how much equity you have in your home at any given moment. Remember, your home isn't a bank account. Use your equity wisely.

Is it possible for me to save money by using my home's equity?

Yes! Remember that if you take out a home equity line or loan, the interest you pay will be tax deductible. So if you have a $15,000 kitchen remodel that you fund with a home equity loan, your interest could be deducted. If you paid for that remodel with a credit card, you won't have the chance to realize any tax benefits. Make sure you consult your accountant or tax advisor first - your personal financial situation could affect the amount you are able to deduct or claim.