HELOC

A HELOC or home equity line of credit has an interest rate tied to the Prime Rate and allows you to take equity out of a property. Of course, you incur interest costs only on the equity taken out with your HELOC. A HELOC can be a good choice if your needs are expected to be episodic. An interest only HELOC will lower your payment. For difficult to verify income, a stated income HELOC is available. A HELOC with no closing costs is available as well. A home equity line of credit will usually close quickly. Email me with questions on a HELOC

An advantage of the HELOC is that your interest costs are generally tax deductible. A comparison between the after tax costs of the HELOC and any consumer loan should be done before any major purchase.

We can lend up to 100% of the home equity in your home but understand that the interest rate will be somewhat higher if your HELOC is over 90%(combined first trust and home equity line of credit) of the value of the property. We will allow up to a 50% home equity line of credit Debt to Income ratio (DTI) with good credit. Please see the link below for more information on HELOC qualification ratios.

Common uses of a HELOC

Debt Consolidation HELOC. If your other debt is too much you may dramatically reduce your monthly payments. See the calculator below for an idea of how much you could save.
Finance a Major Purchase. If a new car or boat is in your future, you may want to compare payments.
Children's Education. Many people find this the most logical way to pay for their children's education. Exactly what I did when my son went to college and I saved a lot of money compared to any other option.
Property Purchase. If you are considering either an investment in income producing real estate or a vacation home, it may make more sense to use this rather than move the cash from other investments which are doing well for you. Please see my pages on Investment Property or Vacation Homes for more information.

Learn more about the tax considerations of a HELOC