WHAT IS A HOME EQUITY LINE OF CREDIT?
A home equity line of credit (HELOC) is a form of revolving credit in which your home serves as collateral. You are approved for a specific credit limit, which is the maximum amount you can borrow at any one time. Usually, your credit limit is determined as follows: (Appraised value of your house x 80%) - existing mortgage balance
The rate for a home equity line of credit is variable and tied to the Wall Street Journal's prime rate.
WHO SHOULD CONSIDER A HOME EQUITY LINE OF CREDIT?
Because your home is likely to be your largest asset, a home equity line of credit is best for major expenses such as college tuition, home improvements, or medical bills.
You must be a property owner to qualify for this loan.
ADVANTAGES OF A HOME EQUITY Line Of Credit
- Lower interest rate
- Interest may be tax deductible
- Ability to borrow larger sums of money
- Once approved, you can borrow up to your credit limit whenever you want.
HOW TO APPLY FOR A HOME EQUITY Line Of Credit
- Complete an application for a Home Equity Line of Credit Loan by clicking here.
- Return the completed application (make sure all owners have signed).
- Enclose a letter or statement from your mortgage company showing the balance of your loan.
- Include the name of your insurance company and agent. (A loss payable clause will need to be supplied to us at closing).
- Send a copy of your deed or mortgage showing the legal description of the property.
- After your credit has been checked, we will approve your loan subject to an appraisal.
Click here for current rates.