Home Equity Line of Credit: the Facts
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When you need some extra cash to make a big purchase, renovate your home, or pay off a high interest credit card, a HELOC (home equity line of credit) might be just what you're looking for. A form of revolving credit, a HELOC is secured by the equity in your home. This is an open-ended loan that may be paid down or charged up for the a set length of time, similar to a credit card. The rate of interest can fluctuate (typically monthly).
The lender will specify your credit limit (the biggest amount you may borrow) with the HELOC. Your credit score, rate of pay, debts and various other financial information can affect your credit limit. You are required to schedule an appraisal on your home to assess your home's present value. Your credit limit will be based on all of the above, as well as a percentage of your property's appraised market value, which is subtracted from the balance owed on your existing mortgage.
Alternative Mortgage Group can walk you through the process of getting a Home Equity Line of Credit. Give us a call at 561-395-4264.