How Much Cash Can You Access?

man planning home improvements he will pay for with his HELOC cash

Posted by Spring EQ on Jul 13, 2022 9:54:16 AM

How much equity can you access from your home? And what's the best way to access it? It's no secret home values have hit record highs. In fact, the Wall Street Journal says that tappable home equity rose to over $11 Trillion in the first quarter of 2022 alone.

Is a HELOC right for you?

A HELOC (home equity line of credit) loan is a home equity line of credit that enables you to tap into your home’s equity. While it may have an interest rate similar to a home equity loan, a HELOC offers access to your home's equity in the form of a revolving line of credit (while a home equity loan offers a one-time lump sum).

What they have in common is that they allow you to borrow against your available home equity with your property as collateral.

With the HELOC, you have the flexibility to withdraw funds from the overall amount when and as you need them, and only pay interest and pay back the funds you draw upon. And the sooner you pay your HELOC back, the less interest you’ll pay — similar to a credit card.

Many homeowners love HELOCs because it allows them to access their home’s equity without touching their low first mortgage rate.

That’s because a HELOC is considered a second mortgage and will have its own term and repayment schedule, separate from your first mortgage.

A HELOC also beats personal loans because it can often offer:

1. Lower interest rates

2. Larger loan amounts

3. The flexibility to only pay interest on what you borrow

4. A tax-deductible option if you’re using the funds for home improvements

How much cash can you access? To see an estimate of how much cash you may be able to access, simply take a minute to visit our equity insights calculator and see.

And whether you want to access your home's equity to pay off high-rate debt, cover home improvements or anything else, we can help you find the solution that works best for you.

Topics: Cashout, HELOC, HomeEquity, CashAccess, home improvement, renovation, CLTV, Cash Calculator

*Details to note:
Spring EQ customers get their cash on average in 21 business days, and as fast as 14 days. This average time is measured from the time we receive all requested documents and assumes your stated income, property and title information provided in your loan application matches your documents and any supporting information collected. The time period calculation to get cash is based on the average funding turn times over the first four months of 2023, assumes the funds are wired, excludes weekends and excludes the government mandated disclosure waiting period. Typical applicants are required to provide a current and valid completed application, proof of income, mortgage statement, home hazard insurance, and a photo ID.

Applicants are typically not required to provide proof of assets, and proof of income may be more extensive for self-employed borrowers. Quarterly, we calculate The Spring EQ Cash-In-Pocket Index™ which is the average reduction of our customers debt payments where at least one debt was paid off with loan proceeds. The most recent Cash-In-Pocket Index™ reported a reduction in debt payments of $530.

Any pre-qualification or “Home EQ” value is in no way a pre-approval, indication of eligibility, or binding underwriting decision.

All borrowers will be required to meet Spring EQ's current underwriting guidelines including verifications of applicant’s credit profile, debt-to-income ratio, and home’s current value. Eligible Home Equity Loan borrowers must have a FICO score of 640 or greater and debt-to-income ratio of 50% or less. Refinance transactions may increase total finance charges over the life of the loan. Speak to a loan officer for details. Eligible Home Equity Line of Credit borrowers must have a minimum FICO score of 640 and debt-to-income ratio of 45% or less. Spring EQ offers Home Equity loan options up to 95% of your home value for qualified borrowers with a credit score of 700 or greater excluding second home or investment properties. The maximum Home Equity loan or Home Equity Line of Credit amount Spring EQ offers is $500,000.

For details, call 888-978-9978 to speak to a licensed Spring EQ Loan Officer. Please Note: Any reference to news organizations or outlets and/or their logos or likenesses on these webpages are solely in reference to the inclusion of relevant home equity, mortgage or interest rate subject matter in current, publicly available national news items and cycles and are not meant to imply endorsement of Spring EQ in any way.