Home Equity Line of Credit: the Facts
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If you need some extra money to make a big purchase, renovate your house, 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. Using your home equity as collateral, a HELOC is revolving credit. This is an open-ended of loan that may be paid down or charged up for the a set length of time, much like a credit card. The interest rate can fluctuate (typically every month).
With a HELOC, your lending institution approves you for a particular credit amount - the largest amount you are able to borrow at any one time under the plan. In deciding the credit limit, your salary, debts, credit history and additional financial circumstances will be considered. So that the lender can ascertain your home' current market value, you'll need an appraisal on your home. Your property's market value, subtracted from your remaining mortgage balance will help to set your particular credit limit.
Pacific Loan Brokers can answer questions about Home Equity Lines of Credit and many others. Call us at 877-310-6200.
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