Line of Credit
A Home Equity Line of Credit (HELOC) offers the ultimate flexibility when it comes to getting convenient, fast cash, whether you need funds for your kid’s education or you just can’t wait to knock “visit Tahiti” off your bucket list.
Monies used from your HELOC account are secured against your home and can be accessed at any time, for any purpose, plus you can redraw the funds whenever you need.
You can take advantage of repaying minimum monthly amounts, or can pay off the entire thing whenever you want without incurring any penalties.
A HELOC is a great way to turn the equity in your home into cash in your wallet and can either be registered in first or second position against your home. Some lenders offer a mortgage product with either a fixed or variable portion as well as a line of credit, as one gets paid down the HELOC portion increases and becomes available.
With a HELOC mortgage, the entire line of credit available is not necessarily advanced upfront. Rather, you have the freedom to use as much or as little of the HELOC as you choose, and you only pay interest on the amount you have withdrawn. Interest is calculated daily at a variable rate attached to prime.