You may be familiar with how to tap into your home's equity by refinancing your FHA, VA, or conventional, but do you know about HELOCs?
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.
"When you utilize your HELOC, you pay on the balance only, not the whole line of credit."
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.