How Does a HELOC Work?
Shopping for a Home Equity Line? We'll be glad to answer your questions about our mortgage offerings! Call us at 281-224-2976.
A home equity line of credit (HELOC) can be helpful when you are hoping a lump sum to renovate your home, make a large purchase, or consolidate debt. Using your home equity as collateral, a HELOC is revolving credit. This is an open-ended loan that can be paid down or charged up for the a set length of time, much like a credit card. The loan interest rate typically fluctuates every month
The lender will set your credit limit (the maximum you can borrow) in the HELOC. Your credit status, salary, debts and various other financial information can affect your credit limit. In order to assess your property's current market value, you'll need an appraisal on your property. Your credit limit will be set considering all of the above, in addition to a percentage of your home's appraised market value, which is subtracted from the balance owed on your current mortgage.
We can answer questions about Home Equity Lines of Credit and many others. Give us a call: 281-224-2976.