HOME EQUITY LINE OF CREDIT (HELOC)
A HELOC is a type of home equity loan that can be used for a variety of purposes. Perhaps you'd like to purchase a new car or need extra funds for your daughter's wedding. Or maybe you'd like to make some home improvements or would like to consolidate debt. Whatever your loan needs may be, we've made the process easy.
Advantages of a HELOC
A Home Equity Line offers great flexibility for individuals and families needing extra cash. Here are some key advantages:
Borrow as Needed
Just like a credit card, you have an open line of credit available to use and a maximum limit of available funds.
No constraints on how the money is used.
Consolidate debt or use it for home improvement. It's completely up to you.
Low Upfront Cost
HELOC loans tend to be less expensive than personal loans or credit cards. Initial interest rates are also usually low.
HELOC vs Closed End Second Mortgage
In a closed end 2nd mortgage, you borrow a set amount against the equity in your property and receive the equity proceeds in a lump sum at closing. Your monthly payment is based on the full loan balance from the first payment through the entire term of the loan.
A HELOC is a line of credit against your property. After appraising your home, the lender will determine the maximum equity line that you are eligible for. You can choose to leave the line of credit untouched and have it available to you for the future, or use the checkbook or debit/credit card provided after closing to withdraw as little or as much as you need up to the loan limit that you were approved for. There is no restriction on what you use the money for and most equity lines offer an interest only payment during the first ten (10) years of the loan. You only make payments on the portion of the line that you have withdrawn during the initial draw period, typically ten (10) years. The balance at the time the draw period ends is then paid back at a fixed monthly amount over a fixed period of the remaining term, typically twenty (20) years.
Do You Qualify for a HELOC?
Contact us today to see if you qualify. After reviewing your finances, we’ll be able to help you decide if a HELOC is the right loan for you. We promise to be transparent throughout the process and keep you informed every step of the way.