How Does a HELOC Work?

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When you need some extra money to make a major purchase, remodel your home, or pay off a high interest credit card, a HELOC (home equity line of credit) may be just what you're looking for. Using your home equity as collateral, a HELOC is revolving credit. This open-ended loan may be be charged up or paid down during the loan term. The loan interest rate generally changes monthly

The lender will set your credit limit (the maximum you can borrow) with the HELOC. In determining your credit limit, your pay-rate, debts, credit status and any other financial obligations will be considered. You will be required to do a home appraisal to determine your home's up-to-date value. Your home's current value, subtracted from your remaining mortgage balance will help to set your specific credit limit.

American Commerce Mortgage can walk you through the process of getting a Home Equity Line. Call us: 714-970-9700.