HOME EQUITY LINE OF CREDIT

WHAT IS A HOME EQUITY LINE OF CREDIT?

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The first thing you need to understand about this kind of credit is that it uses equity as collateral. Equity is the true amount of money you own in your home. If your home is appraised at $120,000, and you owe $20,000 in mortgages, you’ll have $100,000 in equity. You can borrow up to 70% of this with a home equity line of credit. You won’t want to borrow $70,000, but you’ll be able to borrow what you need when you need it and keep the account open for when another one of life’s emergencies comes up in the future.

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When you need to pay off your debts, want to fund retirement or university education or need to make improvements to your home, these can help! If you want to get a good rate you’ll want to talk to us (or a mortgage broker in your area). This will help you get the best terms at the outset so you can enjoy better terms when you borrow. HELOCs work just like a credit card and help you borrow as little or as much as you need.

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WHAT CAN YOU USE A HELOC FOR?

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Home equity lines of credit are usually used for big-ticket items. You can also use them to fund your retirement and pay things off every month. If you have private medical bills or university tuition payments you’ll be able to keep up with them. You’ll need to be careful about borrowing against the equity in your home since if you don’t pay it off you could wind up in big trouble.

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IS A HELOC RIGHT FOR YOU?

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Without a professional opinion, you won’t be able to figure this out. You’ll want to speak with us (or a local mortgage broker near you) to see what will fit your situation best. You may just need a home equity loan instead, but you’ll need to talk to someone to see what you need. Getting any kind of loan against your home all starts with the application and you’re going to need someone who can help you figure that part out.