What is a Home Equity Line of Credit Loan (HELOC)?

Posted on: January 20th, 2015 by firstandsecondmortgages No Comments

A Home Equity Line of Credit (HELOC) works much like a regular line of credit. You can borrow money whenever you want and up to the predetermined credit limit. You can also pay the money back and borrow it again when needed.

Some homeowners take out a HELOC solely as a form of financial protection, knowing that they can draw on their home equity line in case of emergencies like roof repairs, plumbing disasters or sudden car expenses. If emergencies do not arise, homeowners can simply leave their home equity line of credit untapped.

Benefits of Home Equity Lines of Credit (HELOC)

  • The interest for HELOC is lower than the typical interest rates offered by short-term loans and credit cards.
  • HELOCs offer homeowners flexibility in how you can spend your money.
  • A HELOC is a good way to smooth out cash flow.
  • Homeowners need only make payments on their home equity lines of credit if they use it, much like with a typical consumer credit card.
  • Because HELOCS offer a relatively open-ended source of money to tap periodically, they are useful for people who face an ongoing and fluctuating expense like college tuition or private-school fees, or a long-term home-improvement project.

Your Home Equity Line of Credit is just a phone call away. Call First and Second Mortgages at 1-866-405-1228 and get started now.

Request a consultation