Over the years you have spent in your home, you have invested into it every month. Now, you need some extra cash.
What if there were a way you could use the equity you have built up in your home to get the funds you need? That is exactly what you can do with a home equity line of credit, often called simply a “HELOC” for short.
A home equity line of credit is described pretty well by its name. It is a line of credit which you borrow against the equity in your home. That equity acts as security.
A HELOC works differently from a cash-out refinance. With a cash-out refinance, you receive a lump sum in the amount you are borrowing. With a HELOC, what you have is a revolving line of credit much like a regular credit card. It is up to you how much of that line of credit you want to use, so long as you meet the minimum draw requirement.
You are in charge of how much of the HELOC you decide to utilize. You also get to make determinations about when you access those funds.
The initial interest rate for a HELOC may be more competitive than the interest rate you would be quoted for a credit card. Keep in mind that HELOC rates are usually adjustable.
Closing costs for home equity lines of credit tend to be low. Sometimes, there may be no closing costs to pay.
You can use the funds from a home equity line of credit in any way you choose without restrictions.
Multiple flexible repayment plans may be available.
Like other types of financing, home equity loans have their pros and cons to weigh. You will need to consider the details of your financial situation to determine whether a HELOC will be the most suitable fit your needs. This is something which we can advise you on during your consultation if you need guidance.
If you are ready to enjoy the convenience and flexibility of a home equity line of credit, please give us a call today at (800) 293-2133 to schedule your HELOC consultation in Florida, Texas, California, New York, Illinois, or any of the 50 states.
The Best Home Loans is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.