HOME EQUITY LINE OF CREDIT
What is a HELOC?
A Home Equity Line of Credit (HELOC) is a flexible financing option that allows homeowners to borrow against the equity they’ve built in their property.
Unlike a traditional loan, a HELOC works more like a credit card, providing access to funds as needed, up to a predetermined limit, while only requiring interest payments on the amount borrowed.
Benefits of a HELOC
Access to Cash – Use funds for home improvements, debt consolidation, or other financial needs.
Flexible Borrowing – Withdraw only what you need, when you need it.
Lower Interest Rates – HELOCs generally have lower interest rates compared to credit cards or personal loans.
Potential Tax Benefits – Interest on a HELOC may be tax-deductible if used for home improvements (consult a tax professional).
up to 90%
Combined Loan to Value
$500k
Max Loan Amount
50%
Debt to Income Ratio
How a HELOC Applies to Mortgages
Second Mortgage Option – A HELOC can serve as a second mortgage, allowing you to access home equity without refinancing your primary mortgage.
Bridge Financing – Use a HELOC to fund a down payment on a new home while waiting to sell your current property.
Debt Consolidation – Pay off high-interest debts by leveraging your home’s equity at a lower rate.
Refinancing Alternative – Instead of refinancing your existing mortgage, a HELOC allows access to cash without modifying your current loan terms.
