We have all experienced that sense of urgency when a sudden emergency takes over our finances and forces us into financial instability, but most homeowners never knew that there was a way to combat this scenario. With a home equity line of credit (HELOC), you will be able to tap into the equity of your home and borrow money (how much depends on how much equity you have) to pay off whatever life may throw at you. A home equity line of credit is one our most popular loan programs due to its flexible spending options as well as the comparatively low interest rate. Unlike other loans, a home equity line of credit can also give you a bit of a tax break, depending on what you use the money on.
Uses of a Home Equity Line of Credit
An HELOC is ideal for situations that require you to spend a large sum of cash, but over an extended period of time. Scenarios include paying for a family member’s college tuition, paying medical bills, or funding a series of home repairs. Just as with a conventional home equity loan, an HELOC is a secured loan, meaning your home is used as collateral. As with most home loans, having collateral gives the lender a sense of security and therefore you are able to attain the loan at a lower interest rate.
Associated Fees
There are also certain fees that are associated with setting up an HELOC, these fees can include (but are not limited to):
|
|
|
|
|
One important detail to consider when applying for a home equity line of credit is that your home will be used as equity. This means that you are putting your home in jeopardy if you ever default on the loan or happen to make late payments. The sense of security that having an HELOC provides is well worth the risk if you are generally on-time with your bill payments and have a steady job. An HELOC is a flexible solution for stable homeowners looking for a means to pay for long term financial requirements. East West Mortgage offers our home equity loans in the form of a line of credit as well as a lump sum, depending on what your financial needs are, either option has its advantages. Call us today at 1-800-880-4202 and put a little more security in your life with our home equity line of credit!
