The HELOC is essentially a revolving credit attached to your home and can be used like a credit card to accomplish whatever financial necessity occurs over the life of the HELOC.The home equity loan is a lump sum payment provided to you based on the equity in your home and acts much like a typical fixed rate mortgage.Depending on your needs, purpose for loan, and financial situation, both options offer big benefits traditional loans do not.Call 1-877-867-0027 today and let one of our loan officers help you decide which option is works best for you.

Home Equity Line of Credit (HELOC)

This type of home equity lending essentially turns your home into a credit card with a revolving balance. Helocs permit the client to borrow up to a set amount during the life of the home equity line of credit (this “life” term is set by the lender). The borrower uses what they need when they need it during the Helot’s “life,” and as the borrower pays the principal back the credit line’s amount reflects the change permitting the borrower to “withdrawal” again.

However, the interest rate does vary over the life of the loan and payments may fluctuate in accordance. For example, if you take a $30,000.00 equity line of credit, and withdrawal $10,000.00 for your child’s college tuition this leaves $20,000.00 still free for use in your HELOC. When you receive a bonus from work, you pay back $5,000.00 against the principal and now have $25,000.00 available on your line of credit that may be used at any time for any purpose during the “life” of the HELOC.

Benefits

• Flexibility.
• The “life” of the HELOC is often five to ten years .
• Typically the repayment periods are ten to fifteen years.
• Easy Access via check, credit card, or wiring by phone.
• Even with the fluctuating interest rate and payment terms, it in most cases still beats a credit card .

Home Equity Loan:

This type of loan still uses your home’s equity as a gauge for the amount you are eligible to borrow, but only permits a lump sum single pay out to be paid back over a fixed amount of time at a fixed interest rate and payment. For example, your home has $100,000.00 worth of equity, so you borrow $50,000.00 for a new pool against the equity in your home. You receive the $50,000.00 in one lump payment on X day. You then pay the $50,000.00 off at 4.2% interest over the next 15 years at $800.00 a month.

Benefits

• May be able to deduct up to $100,000.00 loan’s interest on taxes
• Lower interest rates than credit cards or unsecured personal loans
• Thousands of possible uses from consolidating other debts to medical emergencies and everything in between
• Questionable Credit – OK
• No available “cash” flow for down payment – OK