How Does a HELOC Work?
Shopping for a Home Equity Line of Credit? We'd be thrilled to talk about our many mortgage solutions! Give us a call at 303-220-7500. Ready to get started? Apply Here
If you need some extra cash to make a large purchase, renovate your home, or pay the balance on a high-interest credit card, a HELOC (home equity line of credit) may be just what you are looking for. A HELOC is a form of revolving credit secured by your home equity. This is an open ended of loan that may be paid down or charged up for the term of the loan, similar to a credit card. The interest rate changes (usually every month).
In a HELOC, your lender will approve you for a specific amount of credit - the maximum sum you are able to borrow at any given time under the plan. Your credit score, salary, debts and various other financial circumstances can determine your credit limit. You are required to have an appraisal of your home to determine your home's current market value. Your home's market value, subtracted from your remaining mortgage balance will help to set your specific credit limit.
At One Source Lending 303-220-7500, we answer questions about Home Equity Lines every day. Call us at 303-220-7500.