Home Equity Line of Credit
What is Home Equity?
If you owe your own home, you must have heard about home equity. So, do you have any idea what this term exactly means?
To put it simply, it is nothing but the difference between your existing mortgages and the estimated value of your home.
For instance, if the estimated value of your home is $200,000, and your home’s first mortgage is of 100,000, you will have equity of worth $ 100,000.
Home equity helps the homeowners with their short term financial plans. Some of the financial goals include:
- Debt consolidation
- World tour
- Planning of second
Are you looking for ways to get the money for any of the above mentioned purpose? Do you have a considerable amount of home equity?
If the answers to both the questions are yes, then accessing funds for significant purchases is possible through HELOC or Home Equity Line of Credit. Regardless for which you want huge funding such as renovating or repairing your home.
HELOC, which is an abbreviation of Home equity line of credit, is a secured credit taken against the home of loan. This is better than the second mortgage as the loan, can use the amount, which he wants to spend and has to pay interest on that particular amount.
This is much better way to consolidate the burden of debt than to use the credit cards or other form of loan. The rate of interest is comparatively lower than second mortgage.
Home Mortgage Care is the one in a country that assist you in finding the best rates for the HELOC. Our HELOC service permits you to decide when you should borrow and what are the best ways to pay it back.
In case you require money for debt consolidation, home improvements, baby shower, educational expenses, or simply for a vacation, we’ll help you choose the best payment option to meet your needs.
What is the process of applying for HELOC?
As the name suggests, this is a mode of borrowing which is taken against the equity in your home. As soon as you repay the amount you have used, then your total limit of credit increases.
The Home Mortgage Care makes you clear about the documents required to complete the process.
The interest you pay on the usage of this loan is only over the amount spending from the total loan bucket. Therefore, as per the lending bodies it is a secured line of credit.
Who can apply for this credit borrowing facility?
The major requirement is simple i.e. one should have their own home on his name and the availability of home equity as well. One can borrow up to 80% of the value of his home. If you owe any other amount, then it will also take into consideration and get minuses from the borrowing amount.
The lending body first verify the credit history and the borrowing history before they make any lending decision.
Home mortgage care will help you know how borrowing is easy for every house owner, if he needs an easy credit facility.
Home equity line of credit is one of the flexible loan options. It allows you to borrow in the face of the estimated value of your home after deducting the remaining amount of mortgage on the home. Home Equity Line of Credit is secured against the title of your home; defaulting on its payment can put you at the risk of losing this asset.
Home Mortgage Care offers 80% loan-to-value on your home equity with a HELOC mortgage, which is the highest value you can get.
Other benefits you get when you pick our mortgage services:
- No annual charges
- No charges on zero balance
- Non-traditional income verification
- No penalty upon returning the loan
- No charges for loan renewal
- No limits on draw amount as interest is only charged upon the monthly withdraw.
- Availability to access funds in case of urgent needs
- No need to refinance
IS A HELOC RIGHT FOR YOU?
Whether you should choose the option of HELOC or not is a tough call and so you require professional opinion for this. Home Mortgage Care professional brokers help you find what fits your situation best. There can be possibilities when you may require a home equity loan, which only an experienced broker can help you in finding.
However, when you make the decision of getting any kind of mortgage against your home, you need to prepare yourself for many complicated applications. Our professional assistance will help you figure out the documentation part well.
So is a HELOC right for you? The answer to this question lies on your need. If you want to clear of all your debts in a single pay, you may require a home equity loan. Conversely, if your requirement for money is for some ongoing expenses, HELOC is the right choice.
Give us a call today!