Home Equity Line of Credit: the Facts
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A home equity line of credit (HELOC) can be helpful when you are needing to borrow a lump sum to remodel your home, make a big purchase, or consolidate debt. A kind of revolving credit, a HELOC is secured by the equity in your home. This is an open ended of loan that may be paid down or charged up for the term of the loan, much like a credit card. The interest rate changes (usually every month).
The lender will set your credit limit (the highest amount you may borrow) in the HELOC. In deciding your credit limit, your income, outstanding debt, credit status and any other financial circumstances will be reviewed. You will be required to have a home appraisal to determine your home's present market value. Your home's current value, subtracted from your remaining mortgage balance helps to determine your specific credit limit.
Elite Financing Group can answer questions about Home Equity Lines and many others. Give us a call at .