What is a home equity loan or line of credit (HELOC)?
A loan for which you can either receive a large sum of money or have an open line of credit that can be drawn as it is needed, with, typically, low interest rates. Use the equity in your home to make improvements to your home, pay college tuition, unexpected expenses or simply free up some extra cash. Home Equity Lines of Credit (HELOCS) offer numerous benefits and flexibility to homeowners:
- The flexibility of accessing funds whenever you need them.
- The ability to re-use available funds as you pay down your balance. (similar to the function of a credit card)
- The stability of the same payment date each month, with payment options to fit your budget.
- Tax benefits of the interest paid.
The home equity line of credit is used as you need it and can be paid off at anytime. You can draw on your line of credit from time to time, up to the total amount available. Your monthly payment is based on the amount of your line of credit you have used. You enjoy a lot of flexibility and control over your money.