Today I’m giving you a tip on how to tap into your home’s equity by using a home equity line of credit, or HELOC.
With a HELOC, the line of credit your lender offers can be utilized up to a certain maximum amount, but the beauty of this product is that you only pay for what you use.
For example, let’s say you have a line of credit for $100,000 secured by your home, but you need to fix up your kitchen and that costs $20,000. Even though your line of credit is much higher than the kitchen repair costs, you’re making interest-only payments on just that $20,000.
So, again, when you utilize your HELOC, you pay on the balance only, not the whole line of credit. When you do use the whole line, that’s called a second mortgage, something I will explain more in my next video message.
Until then, if you have any mortgage-related questions or needs, please feel free to reach out to me via phone or email. I’m here to help.