Home Equity Line of Credit (HELOC)
Home equity loan searches should be guided by a financial professional who can review all the financial options available to you as a client. A seasoned loan officer can help you with due diligence and research.
The line of credit is referred to in the lending loan world as HELOC. How much you pay on a HELOC and the obligations of payment are important to understand before settling on any decision. The professionals at Jacob & Jacob Realty and Finance can put you at ease by holding your hand through the entire line of credit process. Every loan is different when dealing with line of credit home equity, and they will explain the choices to you.
Line of Credit
A line of credit is an alternative financing option if you don’t want to go through a total mortgage refinance, but still need cash towards home improvements, business expenses, or maybe just all new appliances. It works in a way like a credit card where there is a maximum amount from your lender you can borrow on, and you repay by making monthly payments.
Line of credit borrowing is also an option for homeowners who already have a great interest rate on their mortgage, and they don’t want to refinance. Home equity loans are just another option to finance from your home’s value. Line of credit can sometimes be used to combine loans into one payment or interest only loans. In many other cases, clients use a line of credit for emergencies that come up. Common uses for line of credit are:
- Home Improvements
- Tuition Payments
- Interest Only Loan Options
- Covering Irregular Income
- Overdraft Protection
- Unknown Impending Costs or Estimates
What is Home Equity?
A line of credit is a way a homeowner can borrow against the equity built up in their home.
Your home’s equity is found by taking the current value of your home minus any loan on your home such as your mortgage. An example would be if your home is now worth $300,000, and you owe $100,000; then you have $200,000 in equity. Home equity loan lenders may require an initial advance, minimum withdrawal amounts, or limits on outstanding debt.
Jacob & Jacob Realty and Finance is located conveniently in Glendale, serving the Greater Los Angeles, California region. Call us at (818) 536-7332 to learn more about our mortgage, line of credit, refinancing, and real estate services.
Learn More about HELOC loans from Consumer Finance Gov.