Is it time to think about getting a HELOC to consolidate debt?

DDA Mortgage • November 7, 2022

A Home Equity Line Of Credit (HELOC) is a way to get extra cash without having to sell your house. It's also a great way to get cash when you're remodeling, building an addition to your home, or need to pay down credit cards.



How A HELOC Is Different From Traditional Mortgages.


A HELOC is different from a traditional mortgage because it lets you borrow money based on how much equity exists in your home. With a HELOC, you do not need to put any money down, and you don't need to make payments until you withdraw money from the account.



Ways You Can Use A Home Equity Line Of Credit (HELOC)


Many people use HELOCs as a way to access funds if there is an emergency or unexpected expense that comes up like car repairs or medical bills. It's important to remember that this type of loan will affect your credit score so always talk to a mortgage broker or lender about the pros and cons of your situation. Let them know if you plan on moving in the future, plan on starting a business, and/or about any other future plans.


If you're thinking about getting a HELOC loan, here are some things you should know:


  • You don't have to pay back the entire amount at once. You can take out the amount you need and pay back whatever portion of that amount you choose. Please note, minimum payments for interest may apply. Each HELOC's terms are different. Talk to a lender for specific products. Or give us a call, (727) 784-5555, and we can refer you to a trusted partner.


  • HELOCs are secured by your home's equity, so there is some risk if you don't pay back your loan.


  • You can use a HELOC loan for anything from paying off debt to renovating your kitchen or buying a new car.


  • You can pull cash whenever you need the money. If you are thinking of getting a pool, but don't know how much it will be. If you want an RV, but aren't sure how much you will spend, or if you need to pay off debt, but are unsure of how much money you need, HELOCs are a great option. You can draw as much or as little equity from your home as you need.



Why You Might Want A HELOC Instead Of Refinancing


Home Equity Lines Of Credit (HELOCs) are better than refinancing with today's rates, but you might be wondering why.


Here are three reasons:


1. You get to pull what you need instead of a lump sum.


2. You may not have to worry about paying any closing costs or fees, because a HELOC is different from a refinance.


3. It can be easier to get approved for a home equity line of credit than it is for a refinance.


When rates drop, you can roll your mortgage and your HELCO into one loan with lower payments and a lower rate. This is a great option for people who are struggling at the end of the month.



What To Do If You Are 62 Or Older And Looking At A HELOC


If you are 62 or older, you might want to consider a government-backed reverse mortgage. These loans are only available to seniors and are an amazing opportunity to receive monthly payments instead of making monthly payments.


Click here to check out our blog dedicated to educating you about reverse mortgages.


Next Steps To Getting A HELOC Or A Reverse Mortage


Rates are going to drop in the future, and when they do, you'll be ready to refinance. But in the meantime, give us a call at (727) 784-5555. We will connect you with one of our banking partners.


If you have questions about mortgages and home loans, please ask using the form below.

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Finally, putting a stop on the trigger list

By Didier Malagies • September 10, 2025
Excited to share a major update that will make the homebuying process more secure and less stressful. President Donald Trump recently signed the Homebuyers Privacy Protection Act of 2025 into law. This bill is a significant victory for the real estate industry, as it directly addresses the problem of unwanted calls, texts, and emails that often flood clients upon mortgage application. What's Changing? For years, many borrowers have experienced a barrage of unsolicited contact from different lenders immediately after their mortgage application. This happens because of "trigger leads"—a process where credit reporting agencies sell information to other companies once a credit inquiry is made. Effective March 5, 2026, this new law will put a stop to this practice. It will severely limit who can receive client contact information, ensuring client privacy is protected. A credit reporting agency will only be able to share trigger lead information with a third party if: • Clients explicitly consent to the solicitations. • The third party has an existing business relationship. This change means a more efficient, respectful, and responsible homebuying journey. We are committed to a seamless process and will keep you informed of any further developments as the effective date approaches. In the meantime, you can use the information below to inform clients how to proactively protect themselves from unwanted solicitations.  Opting Out: • OptOutPrescreen.com: You can opt out of trigger leads through the official opt-out service, OptOutPrescreen.com. • Do Not Call Registry: You can also register your phone number with the National Do Not Call Registry to reduce unsolicited calls. • DMA.choice.org: For mail solicitations, you can register with DMA.choice.org to reduce promotional mail. tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329

Finally putting a stop to the Trigger leads from happening

By Didier Malagies • September 10, 2025
We're excited to share a major update that will make the homebuying process more secure and less stressful. President Donald Trump recently signed the Homebuyers Privacy Protection Act of 2025 into law. This bill is a significant victory for the real estate industry, as it directly addresses the problem of unwanted calls, texts, and emails that often flood clients upon mortgage application. What's Changing? For years, many borrowers have experienced a barrage of unsolicited contact from different lenders immediately after their mortgage application. This happens because of "trigger leads"—a process where credit reporting agencies sell information to other companies once a credit inquiry is made. Effective March 5, 2026, this new law will put a stop to this practice. It will severely limit who can receive client contact information, ensuring client privacy is protected. A credit reporting agency will only be able to share trigger lead information with a third party if: • Clients explicitly consent to the solicitations. • The third party has an existing business relationship. This change means a more efficient, respectful, and responsible homebuying journey. We are committed to a seamless process and will keep you informed of any further developments as the effective date approaches. In the meantime, you can use the information below to inform clients how to proactively protect themselves from unwanted solicitations. Opting Out: • OptOutPrescreen.com: You can opt out of trigger leads through the official opt-out service, OptOutPrescreen.com. • Do Not Call Registry: You can also register your phone number with the National Do Not Call Registry to reduce unsolicited calls. • DMA.choice.org: For mail solicitations, you can register with DMA.choice.org to reduce promotional mail. Didier Malagies nmls212566 DDA Mortgage nmls324329 

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By Didier Malagies • September 8, 2025
Good question — refinancing can be a smart move, but the timing really matters. The "right time" to refinance your mortgage depends on a mix of personal and market factors. Here are the main ones to weigh: 1. Interest Rates If current mortgage rates are at least 2% lower than your existing rate, refinancing could save you money. Example: Dropping from 7% to 6% on a $300,000 loan can save hundreds per month. 2. Loan Term Goals Switching from a 30-year to a 15-year mortgage can help you pay off your home faster (though monthly payments are higher). Extending your term may lower your monthly payment but increase total interest paid. 3. Equity in Your Home Lenders usually want you to have at least 20% equity for the best rates and to avoid private mortgage insurance (PMI). If your home’s value has increased, refinancing can help eliminate PMI. 4. Credit Score If your credit score has improved since you got your mortgage, you may now qualify for much better rates. 5. Life Situation Planning to stay in the home at least 3–5 years? That’s often how long it takes to “break even” on refinance closing costs. If you might sell sooner, refinancing may not make sense. 6. Debt or Cash Needs A cash-out refinance can help if you want to consolidate higher-interest debt, fund renovations, or free up cash — but it raises your loan balance. ✅ Rule of Thumb: Refinance if you can lower your rate, shorten your term, or eliminate PMI, and you’ll stay in the home long enough to recover the costs. tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
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