Home Equity Line of Credit

If you need some extra money to make a big purchase, renovate your home, or pay the balance on a high interest credit card, a HELOC (home equity line of credit) may be just what you need. Using the equity in your home as collateral, a HELOC is revolving credit. This open-ended loan can be charged up or paid down during the set term of the loan. The loan interest rate generally fluctuates monthly

With a HELOC, your lender approves you for a specific amount of credit - the largest sum you may borrow at any given time with the agreement. In determining the credit limit, your pay-rate, debts, credit status and other monetary circumstances will be taken into account. An appraisal is needed on your home to assess the home's market value. Your property's up-to-date value, subtracted from your remaining mortgage loan balance will help to determine your specific credit limit.