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Home EquityLine of Credit
Your home isnt’t just where you live, it’s one of your greatest financial assets. A HELOC lets you tap into your home’s equity like a flexible credit card, but with better rates and far more potential. Whether you’re dreaming of a kitchen remodel, consolidating high interest debt, or funding your child’s education, a HELOC gives you the financial freedom to do it your way.
Am I Eligible for a HELOC?
Equity
Income
Score
What Is a HELOC?
A Home Equity Line of Credit is a revolving credit line secured by the equity in your home. That means you can borrow what you need, when you need it without refinancing your mortgage or touching your savings.
Think of it this way: your home has been working for you for years, and now it’s your turn to put that hard earned equity to work.
How Does a HELOC Work?
A HELOC gives you access to a line of credit, typically up to 85% of your home’s appraised value minus your current mortgage balance. You draw funds as needed during the “draw period” (usually 5 to 10 years) and then repay the balance during the “repayment period” (typically 10 to 20 years). You only pay interest on the amount you actually use, which gives you maximum flexibility and control.
- Most lenders require that you have at least 15 to 20 percent equity before extending a HELOC.
- A consistent income reassures lenders that you’ll be able to make your payments.
- While some lenders may have more flexible guidelines, a minimum score of around 620 is typical.
Common Uses for a HELOC
Home renovations
One of the most popular uses of a HELOC is improving your home. Whether you’re upgrading your kitchen, finishing a basement, or repairing a leaky roof, a HELOC gives you access to funds when you need them most.
Consolidating debt
Consolidating high-interest debt HELOCs typically offer much lower interest rates than credit cards and personal loans. If you’re juggling multiple debts, using your home equity to consolidate them can simplify your finances and reduce your monthly payments
Medical bills
Medical bills or unexpected expenses Life throws curveballs. A HELOC can serve as a financial safety net in times of medical emergencies, job loss, or unexpected repairs. You don’t need to drain your savings or rack up high-interest debt when your home’s equity can help soften the blow.
FAQ
Q: Will applying for a HELOC hurt my credit?
A: Like any credit application, it may cause a small, temporary dip in your credit score. But using your HELOC responsibly over time could improve your score.
Q: Can I get a HELOC if I already have a mortgage?
A: Yes. A HELOC typically acts as a second mortgage, allowing you to keep your current home loan in place.
Q: Is a HELOC only for home improvements?
A: Not at all. You can use the funds for debt consolidation, tuition, emergencies, business expenses, or just about anything else.
Q: Can I use a HELOC more than once?
A: Yes. As long as you’re within your draw period and haven’t maxed out the limit, you can borrow, repay, and borrow again.
Let’s See What You Qualify For
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Premier Point Mortgage
NMLS #2184348
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Legal Statements
Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
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