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A Home Equity Line Of Credit (HELOC) is a way to get extra cash without having to sell your house. It's also a great way to get cash when you're remodeling, building an addition to your home, or need to pay down credit cards.
A HELOC is different from a traditional mortgage because it lets you borrow money based on how much equity exists in your home. With a HELOC, you do not need to put any money down, and you don't need to make payments until you withdraw money from the account.
Many people use HELOCs as a way to access funds if there is an emergency or unexpected expense that comes up like car repairs or medical bills. It's important to remember that this type of loan will affect your credit score so always talk to a mortgage broker or lender about the pros and cons of your situation. Let them know if you plan on moving in the future, plan on starting a business, and/or about any other future plans.
If you're thinking about getting a HELOC loan, here are some things you should know:
Home Equity Lines Of Credit (HELOCs) are better than refinancing with today's rates, but you might be wondering why.
Here are three reasons:
1. You get to pull what you need instead of a lump sum.
2. You may not have to worry about paying any closing costs or fees, because a HELOC is different from a refinance.
3. It can be easier to get approved for a home equity line of credit than it is for a refinance.
When rates drop, you can roll your mortgage and your HELCO into one loan with lower payments and a lower rate. This is a great option for people who are struggling at the end of the month.
If you are 62 or older, you might want to consider a government-backed reverse mortgage. These loans are only available to seniors and are an amazing opportunity to receive monthly payments instead of making monthly payments.
Click here to check out our blog dedicated to educating you about reverse mortgages.
Rates are going to drop in the future, and when they do, you'll be ready to refinance. But in the meantime, give us a call at (727) 784-5555. We will connect you with one of our banking partners.
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