Is a Home Equity Line of Credit the Right Option for You?
Author: Boychuk Mortgage Group |
Subject to income qualifying, we recommend adding a HELOC to your mortgage as there are only advantages to you.
It’s important to note that this HELOC option does not penalize you for funds you leave untouched and does not have any reverse affect to your credit. Without an added HELOC, if you require access to your equity, you will need to reconstruct your mortgage, resulting in lender penalties & legal fees.
A home equity line of credit (HELOC) is a convenient and inexpensive means to borrowing money using your home’s current value as collateral. Because of the collateral backed loan, the interest rate on this credit line is significantly lower than an unsecured source such as a credit card. If you’ve lost your job, have unexpected bills, need to consolidate high interest debt, require renovations to your home, want to invest, seek an emergency fund, or just need cash, and you have equity in your home, securing a home equity line of credit (HELOC) may be an ideal solution for you.