HELOC

A Home Equity Line of Credit (HELOC) is a second mortgage that allows you to access cash based on the value of your home. You borrow against your equity, and the amount you can borrow varies by lender. A HELOC functions somewhat like a credit card, since you are able to draw from it and repay some or all of it monthly. Every HELOC will have a set “draw” period that will determine how long you can withdraw from the line of credit, and then another set period of time to pay back the principal/interest of the property. Considering the fact that you’re borrowing against your equity in your home, HELOCs are generally used for larger expenses, such as home renovations or debt consolidation. Perhaps the biggest advantage is for those who have an existing mortgage with a low interest rate that they don’t want to refinance, so they can tap into their existing equity by getting a 2nd mortgage on their home in the form of a HELOC instead of doing a cash-out refinance.

For more information about HELOCs, feel free to contact me and I’ll be available to answer any questions you may have.