Home Equity Line of Credit: the Facts
Shopping for a Home Equity Line? We'd be thrilled to talk about your mortgage needs! Call us at 714-970-9700. Ready to begin? Apply Here
When you need some extra money to make a large purchase, renovate your home, or pay the balance on a high-interest credit card, a HELOC (home equity line of credit) might be just what you are looking for. A type of revolving credit, a HELOC is secured by your home equity. This open-ended loan can be charged up or paid down over the loan term. The interest rate changes (typically every month).
Your lender will set your credit limit (the maximum amount you may borrow) with the HELOC. Your credit status, salary, debt and various other financial information will determine your credit limit. You are required to have an appraisal to determine your home's current market value. Your property's market value, subtracted from your remaining mortgage balance helps to determine your specific credit limit.
At American Commerce Mortgage, we answer questions about Home Equity Lines every day. Call us: 714-970-9700.