You improve your home equity position with each monthly mortgage payment. Rising home values will also increase your equity. Homeowners can use a HELOC to capitalize on favorable equity positions and get extra cash. Spring EQ makes the loan process simple so you can get quick access to the equity you’ve earned.
Spring EQ: Overview
Spring EQ is a second mortgage lender that helps homeowners access cash from their homes. The lender lets you tap into equity from investment properties and your personal residence. In addition, spring EQ’s digital and streamlined process lets you obtain funds sooner than if you endured the traditional mortgage lending process.
What is a HELOC?
A HELOC is a second mortgage loan you can utilize at any time, similar to a credit card. You will not pay interest on a HELOC until you borrow money against it. The interest rate varies based on your credit score, income, equity, and other factors. People in a stronger financial position usually get lower interest rates on their loans.
Homeowners and real estate investors can get home equity lines of credit from some online lenders even if they have bad credit. However, these borrowers may have to pay higher interest rates to compensate for their lower scores. If you have a few months to spare, building your credit score can save you money in the long run. However, you shouldn’t delay tapping into your HELOC if you need the funds right now. Spring EQ requires a 680 credit score or higher, along with a debt-to-income ratio below 50%.
You only have to keep up with monthly interest payments to stay in good standing with your HELOC. After that, you can make higher payments each month and become debt-free sooner.
HELOCs vs. Home Equity Loans
HELOCs and home equity loan borrowers have the same objective. Each individual wants to obtain extra cash by tapping into home equity. You build home equity as you make mortgage payments and benefit from appreciation. Some people need extra money from their home equity to fund important purchases, home improvements, or debt consolidation.
Homeowners and investors use their property as collateral to get financing. If you can’t keep up with payments, the lender can take your property. While this scenario is rare, lenders will happily work with you to renegotiate terms to make the loan payments more manageable. These loans already give you an advantage since they have lower interest rates than personal loans, credit card debt, and other financial obligations.
While these loans offer attractive interest rates, only home equity loans offer fixed rates. Since a HELOC is a revolving line of credit, it has a variable interest rate. This rate can change based on your financial outlook, interest rate hikes from the Federal Reserve, and other factors. Home equity loans offer more consistency and fixed monthly payments. HELOCs only require interest payments in the beginning, making them easier to pay off in the beginning.
HELOCs give homeowners more flexibility than home equity loans. You can quickly change course with a HELOC and borrow additional funds to cover an emergency expense. Home equity loans only provide a lump sum, and you won’t get an extra cash reserve beyond the initial proceeds. Home equity loans put a cap on your spending. This dynamic hurts when an emergency expense arises, but it can keep your finances in check and help avoid excessive spending.
Spring EQ lets you select between home equity loans and HELOCs. You can assess Spring EQ’s home equity loans and decide on the right loan option for your financial objectives.
Spring EQ HELOC Review
HELOCs aren’t a new financial product. Many banks, online lenders, and financial institutions let you tap into your home’s equity. We will discuss some reasons to consider a Spring EQ HELOC along with their requirements.
What are the Benefits of a Spring EQ HELOC?
A Spring EQ HELOC lets you access more of your home’s equity. While most lenders allow homeowners and investors to access up to 85% equity, Spring EQ lets you tap into 90% of your home’s equity or $500,000, whichever is lower. Spring EQ gives you more money and has time on its side. While most mortgage lenders take weeks to approve your application, you can receive home equity in an average of 20 days. Spring EQ home equity loans also come with competitive interest rates.
Some people are worried about losing the rates on their current mortgages. This fear has grown in recent months as the Federal Reserve continues raising interest rates. If you get a HELOC with Spring EQ, you get to keep your first mortgage. You won’t have to pay a higher interest rate to borrow money against your home’s equity.
How Much Equity Can You Access with a Spring EQ HELOC?
You can access up to 90% of your home’s equity or $500,000, depending on which amount is lower. Spring EQ lets you take out HELOCs on multiple properties as long as you maintain a debt-to-income ratio below 45%.
What are the Requirements to Get a HELOC with Spring EQ
In addition to the 45% debt-to-income ratio, you will also need a 680 credit score. You must also have a 95% loan-to-value ratio unless achieving that number would take you over $500,000. You also have to live in one of the states that Spring EQ operates in. Spring EQ can do business in most parts of the United States and is in the process of opening up in other locations.
What is the Typical Process to Get a HELOC with Spring EQ?
Spring EQ will invite you to fill out a quick application to prequalify for a loan. You will have to provide basic information such as your name, address, and email address. Spring EQ will present several loan options that all come with no obligation. You can then select the most favorable home financing option based on interest rates and terms.
How to Access Your Home’s Equity with a Spring EQ HELOC
Accessing your home equity gives you plenty of choices. Some investors take out a home equity line of credit to afford the down payment for second homes. Homeowners may use the HELOC proceeds to pay for consolidating debt, home improvements, renovations, a vacation, or other expenses. You have complete flexibility in how you use your funds, and Spring EQ wants to make your home equity more accessible.
You can fill out a simple form to request more information about Spring EQ’s HELOC. Approved applicants will receive loan offers based on their credit scores, debt-to-income ratios, and other factors. As a result, you can get your home equity proceeds faster than traditional home financing.