Home Equity Line of Credit: the Facts
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A home equity line of credit (HELOC) can be helpful when you are needing to borrow a lump sum to remodel your home, make a major purchase, or consolidate debt. Using the equity in your home as collateral, a HELOC is revolving credit. This open-ended loan may be be charged up or paid down over the set term of the loan. The loan interest rate typically changes every month
Your lender will determine your credit limit (the maximum amount you may borrow) in the HELOC. Your credit score, rate of pay, debts and various other financial information can affect your credit limit. An appraisal is needed on your house to determine the home's current market value. Your credit limit will be set considering all of your financial information, as well as a percentage of your home's appraised market value, which is subtracted from the balance owed on your current mortgage loan.
Diamond Mortgage Lending can walk you through the process of getting a Home Equity Line. Call us: 888-365-2023.