Tap into your home equity as per your needs
Home equity lines of credit (HELOC) is a great home mortgage option for homeowners who are looking forward to tapping into the equity of their home. Unlike the usual home equity loans that force you to take the lump sum borrowing amount, HELOCs allow you to borrow only what you need, and when you need, in lesser amounts, so that you can easily meet your monetary requirements without exhausting your home’s equity.
Borrowing what you need helps you to keep your monthly payments low and saves you from debt. Just like your credit cards, HELOC comes with variable interest rates. Your monthly payment varies extensively depending on the current interest rate and how much money you are borrowing at any given – the maximum amount being the equity you have in your home.
The biggest benefit of HELOC is that the interest rates are charged based on the amount you’ve actually borrowed. This means that if you have not used the line of credit that has been issued to you, you are not liable to pay any principal or interest.
- Available on primary and second homes
- Minimum loan/line amount $100,000
- Good credit is needed to qualify (minimum 720)
- Requires 85% LTV on primary homes and 70% LTV on second homes
- Requires most recent W2 stubs and tax docs as proofs
- Flexible payment options
- Variable interest rates
Disciplined borrowers who want to periodically tap into their home’s equity to borrow small amounts of funds for minor home improvements or to cover up other immediate expenses.
