HOME EQUITY LINE OF CREDIT (HELOC)
TWO PRODUCT OFFERINGS THAT GIVE HOMEOWNERS MORE FLEXIBILITY
Now more than ever, borrowers are looking for additional ways to have more flexibility with their money. That’s where a Home Equity Line of Credit comes in — it offers two types of HELOCs.
Standalone HELOC. Independent of who originated the loan, this product offers current homeowners a simple way of tapping into their home’s equity when a cash-out refinance doesn’t make sense due to having a low-interest rate on their current mortgage. It’s a popular option for accessing cash that can be used to consolidate and pay down debt, make home improvements, cover tuition, and more.
Piggyback HELOC. This product allows qualified conventional borrowers to secure a new mortgage on the home while simultaneously opening a home equity line of credit. Doing so allows borrowers with less available for a down payment to borrow additional money that can help them avoid mortgage insurance. It’s also a great option for borrowers with jumbo loan amounts who want to qualify for a conforming loan instead.
What are the benefits of a Home Equity Line of Credit?
|||Line of credit up to $500,000|
|||Eligible for Primary and Second homes|
|||Interest Only payments for 10 years|
|||20-year and 30-year options|
|||No pre-paid penalties|