Home Equity Line of Credit: the Facts
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When you want to borrow some money to consolidate debts or make a big-ticket purchase, a home equity line of credit (HELOC) may be useful. A kind of revolving credit, a HELOC is secured by your home equity. This open-ended loan can be charged up or paid down during the set term of the loan. The loan interest usually fluctuates monthly
In a HELOC, the lender approves you for a predetermined credit amount - the largest sum you can borrow at any one time with the agreement. Your credit status, salary, debt and various other financial circumstances will affect your credit limit. You will be required to have a home appraisal to assess your home's present market value. Your credit limit will be based considering all of your financial information, as well as a fraction of your home's appraised value, which is subtracted from the balance owed on your current mortgage.
At F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org), we answer questions about Home Equity Lines every day. Give us a call: 214-300-8756.