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 big purchase, or consolidate debt. A type of revolving credit, a HELOC is secured by your home equity. This open-ended loan can be charged up or paid down during the set term of the loan. The rate of interest changes (typically monthly).
The lender will specify your credit limit (the maximum amount you may borrow) in the HELOC. In deciding the credit limit, your pay-rate, outstanding debt, credit status and additional financial circumstances will be reviewed. In order to assess your property's present market value, you are going to need an appraisal on your property. Your credit limit will be determined on all of the above, as well as a percentage of your home's appraised value, which is subtracted from the balance owed on your current mortgage loan.
Real Property Finance can walk you through the process of getting a Home Equity Line. Give us a call: 310-379-5997.