Do you need a source of credit for an important project
such as an investment or a home improvement? Home equity line of credit loans are a flexible way to
access large amounts of money.
What are Home Equity Lines of Credit?
A home equity loan line of credit is a
revolving credit line tied to the equity in your home - a
combination of line of credit and equity loan.
A home equity line
of credit uses the equity in your home as collateral for your
loan. Your equity is the difference between the appraised value
of your home and the outstanding mortgage balance and other liens.
The maximum amount you can borrow at any time is the remaining
amount of credit or credit limit granted
When you borrow against an equity line of
credit your payment and the interest you pay is based on your
outstanding balance.
Common Uses of a Home Equity Loan
Ultimately, this
money is secured by your property, so the smart and inexpensive
way to use this credit will be mainly for major expenditures such
as home improvements, education tuition, medical bills, debt
consolidation and investments that have potential for a high
return. Some homeowners obtain home equity lines of credit
as a means of having a cash reserve in the event of an emergency.
Advantages of A Home Equity Line of
Credit
A home equity line of credit is a great
option for homeowners who want access to their home's equity over
a length of time.
The advantage of an equity line of credit over a credit card is
that you can receive a lower interest rate on the line of credit
because it is secured by your home. Unsecured lines of credit such
as credit cards have significantly higher interest rates and fees.
Moreover, it is easier to qualify for lines of credit
Another
advantage over credit cards is that the interest you pay can be
deducted from your federal income tax.
If you are using a line of credit for debt
consolidation, you will simplify things by having a single payment
replacing several. Furthermore, because of lower rates, you are
able to repay a home equity line of credit much sooner.
If you are in need of a small amount of cash
that will be paid off quickly, a home equity line of credit could
save you money over other types of loans.
This loan permits the borrower to take as much
money needed without re-applying each time. The only requirement
is that the total amount of borrowed funds should not exceed the
credit limit.
A home equity line of credit makes the
borrowing process as easy as writing a check - you get the
money when you need it.
Give us a try and you'll see why
Trimark Funding continues to satisfy a growing list of clients.
Start now by simply filling out our
easy online 15 Minute Pre-Approval form
or contact us at 1-888-274-2962 to
give us the same information
over the phone.
If you own a home or are paying
off
a mortgage, you may be eligible for a home
equity line of credit (HELOC).