How Does a HELOC Work?
Are you looking for a new mortgage? We will be glad to assist you! Call us at (602) 332-9544. Ready to begin? Apply Here
When you need some extra money to make a major purchase, remodel your home, or pay off a high interest credit card, a HELOC (home equity line of credit) might be just what you are looking for. A HELOC is a kind of revolving credit secured by your home equity. This open-ended loan may be be charged up or paid down during the loan term. The loan interest rate typically fluctuates every month
Your lender will set your credit limit (the maximum you can borrow) in the HELOC. In determining your credit limit, your income, debts, credit history and additional financial circumstances will be considered. An appraisal is required on your house to determine the property's current market value. Your credit limit will be based on all of your financial information, as well as a fraction of your property's appraised market value, which is subtracted from the balance owed on your existing mortgage loan.
At Valley Savers Mortgage, LLC, we answer questions about Home Equity Lines every day. Call us at (602) 332-9544.