A home equity line of credit (HELOC) is a revolving line of credit that is secured by using your home as collateral. The lender uses your home as a form of insurance to guarantee that you’ll pay back the money you borrow.A home equity line of credit is based on the amount of equity you have in your home and can be approved to a maximum of 80% of your home’s value, when combined with your first mortgage. Most people believe that you have to have perfect credit to qualify for a home equity line of credit but we know better! We work with lenders who will entertain applicants with slightly bruised credit.
Some of the other major benefits include:
There are several benefits to a home equity line of credit, the best part being that you only qualify for it once. Once your home equity line of credit is in place, you can access your home equity line of credit whenever you want. Some of the other major benefits to a HELOC include:
Easy access to funds which can be used at your discretion.
Interest rates are generally lower than other equity-based products.
You only pay based on the amount you owe.
A HELOC is fully open and can be paid back at any time without penalty.
Used properly, a home equity line of credit can help rehabilitate your credit.
Being able to leverage cash flow is almost a necessity in today’s economy. Job closures, layoffs and life’s unforeseen circumstances can really play havoc on your life and financial situation. A home equity line of credit can help you avoid financial stress and can be used to alleviate just about any financial problem you will ever encounter.