What is a HELOC?
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If you want to borrow some money to consolidate debts or purchase a big-ticket item, a home equity line of credit (HELOC) can help. Using the equity in your home as collateral, a HELOC is revolving credit. This is an open ended loan that may be paid down or charged up for the a set length of time, similar to a credit card. The rate of interest changes (usually every month).
In a HELOC, the lending institution will approve you for a specific credit amount - the maximum amount you may borrow at any one time. Your credit score, salary, debts and various other financial circumstances will affect your credit limit. So that the lender can ascertain your property's present market value, you'll need an appraisal on your home. Your credit limit will be based on all of the above, in addition to a percentage of your property's appraised value, which is then subtracted from the balance owed on your existing mortgage loan.
F&T Mortgage, Inc. NMLS # 168839 (www.nmlsconsumeraccess.org) can answer questions about Home Equity Lines and many others. Give us a call: 214-300-8756.