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A Home Equity Line is like a giant credit card.
$0 Balance = $0 Bill!
Home Equity Lines, or HELOC's (Hee-lock) in mortgage-lender-speak, is a large, tax deductible line of credit you can access any time, secured by real estate.
Unlike a regular mortgagee, a Home Equity Line can be both used and paid off. The money flows bidirectionally. This allows you liquidity to funds while still keeping your loan-to-value in the best position possible. You will receive either a credit card or a checkbook (or both) to use, and there's no fee for using your funds. Typical terms are a 10-year "draw" period by which you can use or pay back the funds, followed by a 15-year or 10-year "repayment" period during which you can only pay the loan off, but may not access more money. You can refinance these at any time, though some investors will trade you a lower rate for an "early termination fee" (typically $250-$500) applicable only if the line is closed entirely within three years (not just paid down to $0). You may opt to have a higher rate and/or closing costs to get around this - though most people don't mind, because they expect to need the funds over the three year period.
Unlike most banks, we have some hard-to-find HELOCs too! We have bad-credit home equity lines, and lines for non owner occupied investment property.
Whatever your needs, the next step is to let us know some information.
We can then get you some options to consider!
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