Your Down Payment Can Double As A Credit Line

Use your down payment to create a home equity line of credit (HELOC) - your safety valve for credit emergencies.
A woman walking through a park with a man whose head has been replaced by the body of a infant child

A home equity line of credit is a optional mortgage that gives a homeowner access to their original down payment and new home equity after a home's been bought.

Home equity line of credit is commonly abbreviated to HELOC (HEE-lock). HELOCs are protection against life emergencies, accidents, and disasters.

You can ask for one at the same time you apply for your loan.

HELOCs are mortgage loans that work like a credit card.

  1. You can spend money at any time for any reason
  2. You don’t pay interest when you don't have a balance
  3. You can spend as much as you want until your limit

Also, like credit cards, HELOCs are an emergency cash source. Using a check book or debit card, homeowners can use a home equity line of credit to pay for doctor bills, unexpected home repairs, or anything else.

Opening a home equity credit line is typically free, and annual fees rarely exceed $50. HELOCs are inexpensive insurance policy for hardships homeowners don’t expect.

You might never use your HELOC, but it’s a comfort to know it’s there. Use the chat to ask us your HELOC question anytime.