Home equity line of credit: what should you know?
If you don’t know much about Home Equity Line of Credit loans, then you are at the right place. Here, we will discuss everything that you need to know about home equity line of credit or HELOC so you can make a well-informed decision about whether you are looking for this type of policy or not. If you do apply for a HELOC loan with us, we will take care of the entire paperwork and also ensure that you get an affordable interest rate so you can make your monthly repayments without worrying much about financial expenses. Another benefit of choosing One Mortgage Group for your HELOC loan is that your loan will be processed in a very short period so you can get access to the funds as quickly as you need it. So if you are ready to know how a HELOC loan can help you with your home renovations, business investments and much more, schedule an appointment with our team at One Mortgage Group.
Let’s talk equity
Putting it in a simple manner, equity is something that builds up over time on your property when you buy it. When you start your mortgage payments it might be less, but slowly as you near the completion of paying off your mortgage, it increases and you have more ownership of your property. Now, one of the ways you can use this equity to your advantage is by using it as collateral to receive a lumpsum amount of cash from a lender. And you receive this money at a fixed interest rate. What you do with the funds is completely up to you.
- If you are starting a business, you can use the fund as capital to take your business off ground
- Use it to finance that new car you always wanted to buy;
- Pay your credit card bills;
- Even complete the renovation you’ve meaning to take care of for such a long time.
Whatever you want to do, you can use the money however you see fit. And this is how a HELOC of a home equity line of credit loan works. You are using the equity of your property to secure funds and as you start paying back your loan you will get back the percentage of equity you kept as collateral. If you have any queries, feel free to contact One Mortgage Group, we will be more than happy to help you.
The phases of HELOC
There are generally two phases of a HELOC loan. First is the draw period where you can draw the funds that you wanted from a HELOC account. This phase has a period of 10 years when you have access to your available credit as you choose and only make small interest-only payments. You can also extend the draw period on request. After this phase completes, you will enter the repayment period where can last up to 20 years and it completes as soon as you repay the amount that you withdrew.
You will be pleased to know that generally, the interest rates for a HELOC loan are very affordable and if you have a good credit score, then you will surely get the best deals available in the market. Don’t worry if you don’t though, at One Mortgage Group, we have options for everyone.
All in all a HELOC loan
- Offers lower costs than any other types of loan.
- You will have access to a large amount of money as you can use a maximum of 80% of your property equity as collateral.
- You can use the money for any purpose.
- The interest rates are fixed.
If you are still not impressed, then get in touch with us to learn about some more benefits that you get. Contact One Mortgage Group for Home equity line of credit today!
At One Mortgage Group, our mission is to set a high standard in the mortgage industry. We are committed to quality customer service - putting the people we serve first.
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