Home Equity Line of Credit: the Facts
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A home equity line of credit (HELOC) can be helpful when you are looking to borrow a lump sum to remodel your home, make a large purchase, or consolidate debt. Using your home equity as collateral, a HELOC is revolving credit. This open-ended loan can be charged up or paid down over the loan term. The loan interest rate typically fluctuates monthly
With a HELOC, your lending institution will approve you for a specific amount of credit - the largest sum you are able to borrow at any one time. In setting your credit limit, your salary, outstanding debt, credit history and other monetary circumstances will be taken into account. An appraisal will be required on your house to assess the home's present market value. Your credit limit will be set on all of the above, in addition to a fraction of your home's appraised market value, which is then subtracted from the balance owed on your current mortgage.
Alternative Mortgage Group can walk you through the process of getting a Home Equity Line of Credit. Call us at 561-395-4264.