Posts tagged Home Equity Line of Credit
What is the Right of Rescission?

The right of rescission is a borrower’s right, as granted by the Truth in Lending Act, to cancel a contract within three days of having already signed the contract agreement for a home equity loan, home equity line of credit, or mortgage refinance.

Read More
HELOC: Home Equity Line Of Credit in Home Loans

A Home Equity Line of Credit, also known as a HELOC, allows you to use the value you’ve built up in your home in order to secure a revolving line of credit. Individuals and families often use a HELOC to pay for serious expenses (like healthcare or college tuition) or to consolidate high-interest loans (like credit card debt).

Read More
Home Equity Loans (HEL) vs. Home Equity Line of Credit (HELOC)

Home equity loans (HELs) and home equity lines of credit (HELOCs) are both ways that you can use the value in your home to pay bills, medical expenses, or to finance home improvements and renovations. While home equity loans provide a large, lump-sum payment usually in the form of a check, a HELOC simply provides access to credit based on the equity in your home. As a revolving line of credit, a HELOC functions more closely to a credit card than a traditional mortgage -- and many HELOCs actually come with one.

Read More
What is Home Equity?

In basic terms, home equity is the amount of financial value that a homeowner has built up in their home. To discover how much home equity you have, take your property’s market value and subtract your outstanding loan balance. As you pay off your mortgage (or your home’s value increases), the amount of home equity you have increases.

Read More
Can You Buy a House with a Home Equity Loan?

A home equity loan can be a source of funding for your next home. Although you are unlikely to be able to buy a home outright with a home equity loan, you may be able to put a substantial down payment on a second home.

Read More
Home Equity Loans (HEL) vs Home Equity Line of Credit (HELOC)

The interest on both HELs and HELOCs are lower than credit card rates as they are secured by your home, which makes them an attractive source of funds. The main differences between the home equity loans and home equity lines of credit are:

Read More
HELOC: Home Equity Line Of Credit

A home equity line of credit (HELOC), is a pool of credit you can draw from using your home equity as collateral. Your home equity is the difference between the value of your home and the mortgage balance. So if your home is valued at $250,000 and your mortgage is $150,000 then your home equity is at $100,000 ($250,000-$150,000).  

Read More
Home Equity in Relation to Home Loans

Home equity is value built up from paying down the mortgage of a home while it appreciates in price. It is the difference between the market price of a home and the debt attached to it like a mortgage. Home equity is the portion of your home that you actually own.

Read More
Accessing Your Home Equity

There are several ways you can access your home equity such as selling your home, doing a cash out refinance, taking out a home equity loan, or opening a home equity line of credit. Turn the equity in your home into a source of cash to use as you see fit.

Read More
Calculating the Value of a Home Equity Line of Credit (HELOC)

The value of a home equity line of credit (HELOC) is determined by the home equity and the lenders acceptable level of combined loan to value (CLTV). The home equity has to be large enough to cover the requested loan, and the CLTV has to be at a sustainable level

Read More