What is a HELOC?
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When you need some extra cash to make a large purchase, remodel your house, or pay the balance on a high-interest credit card, a HELOC (home equity line of credit) may be just what you are looking for. A kind of revolving credit, a HELOC is secured by the equity in your home. This is an open-ended loan that can be paid down or charged up for the a set length of time, similar to a credit card. The loan interest rate usually fluctuates every month
The lender will determine your credit limit (the maximum you may borrow) with the HELOC. In determining your credit limit, your income, debts, credit history and any other financial circumstances will be taken into account. So that the lender can ascertain your home' current market value, you'll need an appraisal on your property. Your credit limit will be determined considering all of your financial information, as well as a percentage of your property's appraised value, which is then subtracted from the balance owed on your existing mortgage loan.
Smith-Craine Real Estate Financing can walk you through the process of getting a Home Equity Line. Call us: (415) 406-2330.