Homeowners can access cash from their home's equity WITHOUT touching their low first mortgage rate. It's not a secret—but more and more homeowners are just now discovering one of the best options available to them.
"A home equity line of credit, also known as a HELOC, is one of the best ways to access equity in your home..."
That's what CNBC.com had to say about HELOCs. HELOCs serve as a revolving line of credit similar to a credit card, but with some very big differences. A HELOC is typically taken out in addition to your existing first mortgage, and lets you borrow against your available home equity with your property as collateral.
Therefore, HELOCs differ from first mortgage refinance loans by adding a second mortgage onto your property and won't change the terms of your existing mortgage.
How much cash can you access?
Many refinance cash out loans won't let you access as much cash as a HELOC. And many traditional bank HELOCs won't let you access as much cash as non-bank lenders.
For instance, Spring EQ allows homeowners to access cash up to 97.5% of their home's equity. If you're interested, take a moment to let us know and we'll reach out to help you explore your options.
The cash homeowners need to achieve your goals
Debt consolidation. Home improvement. Tuition costs. These are all common reasons for homeowners to access their home's equity. But the truth is, you can use the funds for anything you want. Some may want the security of having the funds available for an emergency—or unexpected large expense. Everyone's goals are different. What could a HELOC help you do?
Other important aspects to HELOCs are their interest rates and closing costs. HELOC interest rates are typically variable and change in conjunction with an index based on your credit profile.
The higher your credit score, generally the lower the index markup. Regarding closing costs, a unique aspect of HELOCs is that they usually have no (or relatively small) closing costs compared to home equity loans and first mortgage refinances.
Is a HELOC Right for You?
When considering your options, it is important to consider all the factors and make the best choice for you. We offer fixed-rate Home Equity Loans as well as HELOCs with 10 months of interest-only payments. If you're ready to explore your options, we're here to help.