A home equity line of credit is a secured form of credit, using your home as a guarantee for repayment. This form of credit allows home owners to borrow against the equity in their home. You are able to borrow up to 80% of the value of your home.
Current Home Value: 950,000
Current Mortgage: 200,000
Total Equity: 750,000
750,000 x 80% = 600,000
Based on this scenario, up to 600.000 can be borrowed.
These types of credit usually have an interest only payment option. Borrowing rates are usually low, as it’s secured against your home.
These funds can be used for many purposes and funds are readily available. We believe every home owner should have an equity line of credit. It is vital in times uncertainty and emergencies. If the line of credit is not used, you are not charged or owe anything.