Home Equity Line of Credit (HELOC)

The value of your property less the amount of money you owe is considered home equity. For example: Your property value is $500,000, and you owe $300,000. You may qualify for a HELOC since you have more than 20% equity in your property.

But keep in mind you cannot exceed 65% of your property’s value.

Most HELOCs are interest-only payments, but there are a wide variety of HELOC products available. This means you are only obligated to pay interest on the money you borrow or withdraw. Typically interest rates are prime +0.5% and prime +1.00%. You only pay when you use it.

• Lower interest rates than most other loans and low to no closing costs.
• Interest-only variable rate payments, or lock in your balance at a fixed rate and term for fixed payments.
• Borrow several times 
• When you pay down your credit line, the funds become available for borrowing again during the 10-year draw period. 
• The remaining balance can be repaid over 20 years.

Here are a few ideas for what you can do with your HELOC:

• Renovations to the home
• Debt consolidation
• Fund for Emergencies
• Investing Education Costs
• Any major purchase
• Take the next step toward making your dream a reality.