What is a HELOC?

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When you need to borrow some money to consolidate funds or make a big-ticket purchase, a home equity line of credit (HELOC) might help. A type of revolving credit, a HELOC is secured by the equity in your home. This is an open ended loan that may be paid down or charged up for the term of the loan, similar to a credit card. The loan interest rate usually fluctuates every month

The lender will specify your credit limit (the maximum amount you can borrow) with the HELOC. Your credit score, income, debt and various other financial circumstances can affect your credit limit. You will be required to schedule a home appraisal to assess your home's present market value. Your credit limit will be based on all of the above, in addition to a percentage of your home's appraised value, which is subtracted from the balance owed on your present mortgage loan.

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.