What is a HELOC?
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A home equity line of credit (HELOC) can be helpful when you are hoping a lump sum to renovate 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 open-ended loan may be be charged up or paid down over the loan term. The loan interest rate usually fluctuates every month
Your lender will specify your credit limit (the maximum amount you can borrow) with the HELOC. In setting the credit limit, your pay-rate, outstanding debt, credit status and additional financial circumstances will be considered. So that the lender is able to assess your house's current market value, you're going to need an appraisal on your property. Your credit limit will be set on all of your financial information, as well as a fraction of your home's appraised market value, which is then 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. Call us: 561-395-4264.