Home Equity Line of Credit: the Facts
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If you want to borrow money to consolidate funds or buy a big-ticket item, a home equity line of credit (HELOC) may be useful. A HELOC is a type of revolving credit secured by your home equity. This is an open ended of loan that may be paid down or charged up for the term of the loan, similar to a credit card. The loan interest usually changes monthly
With a HELOC, your lending institution approves you for a specific amount of credit - the highest amount you may borrow at any given time under the plan. In deciding the credit limit, your income, outstanding debt, credit status and other financial circumstances will be reviewed. So that the lender is able to assess your property's present market value, you'll need an appraisal on your property. Your home's up-to-date value, subtracted from your remaining mortgage loan balance will help to set your particular credit limit.
Alternative Mortgage Group can walk you through the process of getting a Home Equity Line. Give us a call at 561-395-4264.