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

• Request an application for a Home Equity Line of Credit Loan.
• 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.

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