Home Equity Line of Credit: the Facts
|Looking for a Home Equity Line of Credit? We can help! Give us a call today at 713-370-LOAN(5626) . Ready to get started? Apply Now.|
A home equity line of credit (HELOC) can be useful when you are hoping a lump sum to renovate your home, make a major purchase, or consolidate debt. A kind 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 loan term. The loan interest rate typically changes monthly
In a HELOC, your lending institution approves you for a predetermined amount of credit - the maximum sum you are able to borrow at any given time under the plan. Your credit history, income, debt and various other financial information can determine your credit limit. You will be required to have an appraisal to determine your home's up-to-date market value. Your credit limit will be based on all of your financial information, as well as a fraction of your property's appraised market value, which is then subtracted from the balance owed on your existing mortgage loan.