What is a HELOC?
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A home equity line of credit (HELOC) can be helpful when you are looking to borrow a lump sum to renovate your home, make a large purchase, or consolidate debt. Using your home equity as collateral, a HELOC is revolving credit. This open-ended loan can be charged up or paid down over the set term of the loan. The loan interest rate generally changes monthly
The lender will specify your credit limit (the highest amount you may borrow) with the HELOC. In deciding your credit limit, your salary, outstanding debt, credit history and additional monetary obligations will be considered. So that the lender can assess your property's present market value, you will need an appraisal on your home. Your property's up-to-date value, subtracted from your remaining mortgage balance helps to set your specific credit limit.
At One Source Lending 303-220-7500, we answer questions about Home Equity Lines every day. Give us a call at 303-220-7500.