What is a HELOC?
You could tap into your home equity with a cash-out refinance. But what if you already have a low rate on your mortgage?
Consider getting a home equity line of credit (HELOC) instead.
What is a HELOC?
According to Investopedia, “A home equity line of credit, or HELOC, is a set amount of available cash that can be used at the accountholder’s discretion and repaid over time. It works much like a credit card but has a substantially lower interest rate on outstanding balances. The money withdrawn is a loan secured by the borrower’s home mortgage, so a default on a HELOC account can be disastrous.”
With a HELOC, you can hold onto your low mortgage rate and still access funds to help pay for tuition, home renovations, high-interest credit cards, personal loans or whatever else you need it for!
Here are a few things you need to know.
- HELOC funds can be withdrawn as needed
- Multiple draws are available
- Line amount of $10,000 – $500,000
- Minimum 680 credit score is required
- Variable rate
- Flexible payment options
Remember, a HELOC is a variable rate, revolving line of credit that can be secured on your primary residence only.
If you have additional questions, please reach out. We are happy to help in any way we can!
