What is a HELOC?

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When you need to borrow cash to consolidate debts or make a big-ticket purchase, a home equity line of credit (HELOC) may help. Using the equity in your home as collateral, a HELOC is revolving credit. This open-ended loan may be be charged up or paid down over the loan term. The interest rate can fluctuate (generally every month).

The lender will determine your credit limit (the biggest amount you can borrow) with the HELOC. In determining your credit limit, your salary, outstanding debt, credit status and additional monetary circumstances will be considered. An appraisal is required on your home to determine the property's market value. Your home's current value, subtracted from your remaining mortgage balance helps to determine your particular credit limit.

American Commerce Mortgage can answer questions about Home Equity Lines of Credit and many others. Call us at 714-970-9700.