What is a HELOC?
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When you need to borrow cash to consolidate funds or make a major purchase, a home equity line of credit (HELOC) can help. Using your home equity as collateral, a HELOC is revolving credit. This is an open-ended of loan that can be paid down or charged up for the a set length of time, much like a credit card. The loan interest rate usually changes every month
With a HELOC, the lender approves you for a predetermined credit amount - the highest sum you are able to borrow at any given time under the plan. In setting the credit limit, your income, outstanding debt, credit history and any other financial circumstances will be considered. So that the lender can ascertain your property's current market value, you'll need an appraisal on your property. Your property's up-to-date value, subtracted from your remaining mortgage loan balance helps to determine your specific credit limit.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can answer questions about Home Equity Lines of Credit and many others. Call us at 214-300-8756.