What is a HELOC?
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A home equity line of credit (HELOC) can be useful when you are hoping a lump sum to renovate your home, make a major purchase, or consolidate debt. A form of revolving credit, a HELOC is secured by the equity in your home. This is an open ended of loan that may be paid down or charged up for the term of the loan, much like a credit card. The loan interest rate usually changes monthly
In a HELOC, the lender will approve you for a predetermined credit amount - the largest sum you are able to borrow at any one time under the plan. In setting your credit limit, your salary, debts, credit history and other financial obligations will be reviewed. You are required to do a home appraisal to assess your home's current market value. Your home's current value, subtracted from your remaining mortgage balance helps to set your particular credit limit.
At Team Funding Group, we answer questions about Home Equity Lines every day. Give us a call: (925) 627-1400.