How Does a HELOC Work?
Shopping for a Home Equity Line of Credit? We can help! Call us at (415) 406-2330. Ready to begin? Apply Online Now
When you need to borrow some money to consolidate debts or purchase a big-ticket item, a home equity line of credit (HELOC) can be useful. Using the equity in your home as collateral, a HELOC is revolving credit. This open-ended loan may be be charged up or paid down over the loan term. The loan interest rate typically changes monthly
With a HELOC, the lending institution will approve you for a specific amount of credit - the maximum sum you are able to borrow at any one time under the plan. Your credit history, rate of pay, debts and various other financial information can affect your credit limit. An appraisal will be required on your home to determine the property's current market value. Your home's market value, subtracted from your remaining mortgage balance will help to determine your specific credit limit.
Smith-Craine Real Estate Financing can walk you through the process of getting a Home Equity Line. Call us: (415) 406-2330.