Home Equity Line of Credit (HELOC)
A HELOC can be a great way to access needed money for those important things that come up in life.
Need extra funds to pay off debt or maybe for some home renovations? Look no further.
A Home Equity Line of Credit or HELOC for short, is simply a revolving line of credit that allows you to borrow against the equity in your home. This is typically at a much lower interest rate than a traditional line of credit. The variable-rate interest is paid monthly on only the amount you withdraw, and you usually have flexibility in repaying the amount borrowed, which is made in addition to your mortgage payments.
How much home equity can I access with a HELOC?
You may be able to borrow up to:
- A maximum of 80% of the market value or purchase price of your home when combined with a current mortgage
- A maximum of 65% of the market value or purchase price of your home as a ‘stand alone’ HELOC
- Refinancing or re-qualification might sometimes be required as well
What can I use a HELOC for?
You can use your line of credit at your discretion for any extra funds you might need. Some examples are…
- Home renovations, pool, furniture or appliances
- Investment opportunities such as stocks, bonds, properties
- College or University tuition
- Debt consolidation
- Medical expenses or any other unforeseen expenses