Home Equity Loans

Home Equity Line of Credit

Get cash out when you refinance your home mortgage. If you need to borrow money to pay off debts or make a purchase, a home equity line of credit (HELOC) can be extremely useful. A HELOC is a revolving credit line secured by the equity in your home. This is an open ended loan that can be paid down or charged up for the term of the loan, similar to a credit card. The interest rate is typically variable, although most mortgage companies offer some fixed rate options as well.

With a HELOC, your lender will approve you for a specific amount of credit - the maximum amount you may borrow at any one time under the plan. In determining your credit limit, your income, debts, credit score and other financial obligations will be reviewed. An appraisal may be required to determine your home’s market value. Your credit limit will be based on a percentage of your home’s appraised value.
With most lenders, HELOC loans have many of the same expenses as were associated with your original mortgage, such as an application fee, title search, appraisal, attorneys’ fees, and points (a percentage of the amount you borrow).