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Mortgage Line of Credit
A mortgage line of credit or HELOC usually has a floating interest rate tied to the Prime Rate and allows you to take equity out of a property when you wish. Of course, you incur interest costs only on the money taken out. It can be a good choice if your needs are expected to be episodic. To keep payments low, most mortgage lines of credit have an interest only period followed by a fully amortizing period. Email mortgage line of credit questions
A major advantage of a HELOC is that your interest costs are tax deductible. A comparison between the after tax costs of the HELOC and any consumer loan should be done before any major purchase. Please give me a call if you need help with the calculation.
We can lend up to 100% of the value of your home but understand that the interest rate will be somewhat higher if your line of credit is over 80%(combined first trust and HELOC) of the value of the property. We will allow up to a 50% Debt to Income ratio (DTI) with good credit. Please see the link below for more information on qualification ratios.
Common uses of a mortgage line of credit
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Debt Consolidation. If your other debt is too much you may dramatically reduce your monthly payments.
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Finance a Major Purchase. If a new car or boat is in your future, you may want to compare payments.
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Children's Education. Many people find a HELOC 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.
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Property Purchase. If you are considering either an investment in income producing real estate or a vacation home, it may make more sense to unlock the equity in your home 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.
Read more about Mortgage Line of Credit Closing Costs
I have included a page on how to calculate your mortgage line of credit qualification ratios.
I have included a page on mortgage line of credit documentation requirements.
Learn about the differences between home equity loans and lines
We offer you the ability to qualify and close into several unique programs which accommodate borrowers with non traditional income or asset situations.
* I have included a section on the new Cash Flow ARMS. A LIBOR based product which gives you complete flexibility in managing your mortgage.
The new Asset Manager is a creative HELOC which gives you complete control over your mortgage as well.
As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service.
Prequalify for your Mortgage
Line of Credit