Home Equity Line of Credit: the Facts
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A home equity line of credit (HELOC) can be helpful when you are hoping a lump sum to renovate your home, make a big purchase, or consolidate debt. A type of revolving credit, a HELOC is secured by your home equity. This open-ended loan may be be charged up or paid down during the set term of the loan. The interest rate changes (generally monthly).
The lender will set your credit limit (the highest amount you can borrow) with the HELOC. In determining the credit limit, your salary, debts, credit history and other financial circumstances will be reviewed. An appraisal is needed on your house to assess the property's current market value. Your property's market value, subtracted from your remaining mortgage loan balance will help 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. Give us a call: 214-300-8756.