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.
- You can spend money at any time for any reason
- You don’t pay interest when you don't have a balance
- 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.
