What Is A HELOC?
A HELOC is an open-end revolving line of credit with an adjustable interest rate. The borrower may draw funds at any time, provided they don’t exceed the approved credit limit. The borrower only pays principal and interest on the funds drawn.
Like a home equity loan, a HELOC may involve closing fees at the start of the loan. The are a type of secured loan in which the borrower uses their home equity as collateral. This type of loan is often used to finance major expenses such as home improvement, medical expenses, or college tuition fees.
A home equity loan creates a lien against the borrower’s home and reduces home equity. As the borrower makes payments, their home equity increases again. A home equity loan usually has a shorter repayment term than a traditional mortgage.
Is a HELOC Right For Me?
Before making a decision, you should weigh carefully the costs of a home equity line against the benefits. Shop for the credit terms that best meet your borrowing needs without posing undue financial risks. And remember, failure to repay the amounts you’ve borrowed, plus interest, could mean the loss of your home.
How Does A HELOC Work?
Draw Period For Advances is 5 years & only the amounts you need.
Can’t get easier than that!
How Can I Use A HELOC?
Better interest rates. If you’re taking out a HELOC for your child, you might be able to get better interest rates than they can with private student loans.
A Home Equity Loan for Medical Expenses Can Be a Good Choice for Your Family: Several basic features of a home equity loan make it a good choice when you need money for a medical emergency: Low interest rates: Home equity loans are secured by your home, and the interest rates are often lower than unsecured loan rates