What is a HELOC?
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When you need some extra cash to make a large purchase, remodel your house, 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 may be be charged up or paid down during the set term of the loan. The loan interest typically changes every month
The lender will set your credit limit (the maximum you can borrow) in the HELOC. In setting the credit limit, your pay-rate, outstanding debt, credit history and additional monetary circumstances will be reviewed. An appraisal is needed on your home to determine the property's market value. Your credit limit will be set considering all of your financial information, as well as a fraction of your home's appraised market value, which is subtracted from the balance owed on your present mortgage.
Valley Savers Mortgage, LLC can walk you through the process of getting a Home Equity Line. Give us a call at (602) 332-9544.