Home Equity Line Of Credit (HELOC)
We understand the significance of your home as more than simply an asset that provides shelter; it represents potential financial gains as well. That’s why we want to guide you in getting HELOC in times of need.
This loan category enables homeowners to utilize the equity you have accumulated in your property by borrowing against it. It grants you a flexible line of credit, comparable to a credit card, which allows to withdraw funds as required, up to a predetermined maximum limit, with home serving as collateral.
How Home Equity Line of Credit Work?
Our experienced team will evaluate the current market value of your home and subtract any outstanding mortgage balance to determine the available equity. The remaining equity serves as the basis for your HELOC limit.
HELOC generally consist of two stages: the draw period and the repayment period. In the draw period, which typically spans 5 to 10 years, you have the option to borrow funds from the credit line and make interest-only payments or pay both the principal and interest. Once the draw period concludes, the repayment period commences. This phase usually lasts 10 to 20 years and requires you to repay both the principal and interest, with no further access to withdraw funds.
Home Equity as Collateral
As a barrower, you should be aware that one crucial aspect of a HELOC is that your home serves as collateral. If you are unable to repay the loan, the lender has the right to foreclose on your property. It's important to ensure that you can comfortably manage the monthly payments and understand the potential risks associated with using your home as collateral.
Contact us today to explore the possibilities and discuss how a Home Equity Loan (HELOC) can support your financial goals.