What is a HELOC?
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When you need to borrow cash to consolidate debts or purchase a big-ticket item, a home equity line of credit (HELOC) can help. A type of revolving credit, a HELOC is secured by the equity in your home. This open-ended loan can be charged up or paid down over the set term of the loan. The interest rate changes (usually monthly).
Your lender will specify your credit limit (the maximum you may borrow) with the HELOC. In determining your credit limit, your income, outstanding debt, credit status and any other monetary circumstances will be reviewed. An appraisal will be required on your house to assess the property's market value. Your property's up-to-date value, subtracted from your remaining mortgage balance helps to determine your specific credit limit.
Real Property Finance can answer questions about Home Equity Lines and many others. Give us a call at 310-379-5997.