Linda Linfoot - Keeping You Informed
Looking For A Loan? Hello, HELOC!
If you're a homeowner with equity in your property, you'll be interested in learning about a HELOC – a Home Equity Line of Credit.
The difference between a HELOC and a regular home equity loan is that a HELOC simply makes a certain amount of money available for your use, as needed, whereas a home equity loan provides a pre-determined amount of money in a lump sum, up-front.
It's important to recognize that a HELOC represents secured debt – and that your house is the security! In other words, if there's any chance you may default on your HELOC, you need to understand you could be putting your home on the line.
If you know you are in position to manage a home equity line of credit responsibly, there are definite advantages to a HELOC, including:
Practicality. You can open a HELOC for the maximum amount allowed, but use only what you need, for emergencies or to pay off credit cards or other debts that may have higher interest rates. A HELOC is also a good option as a home renovation loan, as it allows you to use your home's value to build equity.
Affordability. Today's low interest rates result in access to a relatively inexpensive loan. Know too, that you'll pay interest only on the money you actually use.
Repayment flexibility. HELOCs tend to offer flexible repayment options.
A HELOC is just one loan opportunity. A mortgage broker's job is to provide you with all the options that would make sense for your own, individual needs. Please call today for an update on all of today's financial options.
