A home equity line of credit is a type of loan made available to homeowners who wish to use the equity of their home as collateral and security for their debt. These loans are essentially a line of credit provided to the homeowner.
A Home Equity Line of Credit works much like a credit card since interest is charged at a variable rate that is predetermined. When you withdraw money and there is a balance owing on the loan, monthly minimum interest payments will need to be made. There are no closing costs when dealing with a home equity line of credit, and you only pay interest on what you borrow.
A home equity line of credit is ideal because it provides easy access for you, the homeowner, to get cash fast as you need it and have the freedom and flexibility to use that cash for any purpose you would like. A Home equity line of credit is a popular choice for people who are not sure how much they will need to borrow and when. You will usually have access to ongoing credit (cash) for a set period of time, and can make the minimum monthly payments for the interest using the line of credit, repay it in part, or pay it all off at any time.
This can be an excellent way to help with short term annual and monthly payments such as university tuition, renovation projects, higher-interest credit card debts, and more.
Getting approved for a home equity line of credit is easy! As long as you own a home, for the most part, you can get approved quick and easy. You don’t have to even live in the property. Investment properties that you rent out to others can qualify for this type of loan too!
The amount of money you can borrow is based on the amount of value you have in your property. Clover Mortgage can arrange a Home Equity Line of Credit as small as $10,000 to well over $1,000,000.
To find out how much equity you have available in your property you would consider the total value of your property and subtract the remaining balance of your mortgage. For example, if your home is worth $500,000 and your remaining mortgage balance is $100,000, then you have $400,000 in equity available in your home!
*Rates start as low as 5.59%
*Rates are subject to change. Terms and conditions may apply.
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