Many home owners find themselves in a situation where they want to tap into the equity on their home. Maybe the home needs repairs, they need a new car, or they want to send that first kid to college.
A cash out refinance is a common way to get usable home equity, however, it involves getting a new mortgage. Some homeowners don’t want to refinance, because it could mean replacing their low-rate mortgage for a higher rate one. A home equity line of credit is a great way to use the equity in a home, without replacing a low-rate first mortgage.
What is a Home Equity Line of Credit?
A home equity line of credit (HELOC) is essentially a second mortgage with a floating interest rate, that can be drawn upon for expenses – like a credit card. Typically, a HELOC has a set term length, but can be paid down at any time.
A Quick Solution
Another advantage of a HELOC over a cash-out refinance, is that the process for getting a HELOC is a lot less time consuming. Many lenders ask for less documentation and can process HELOCs more quickly.
The best way to get a quick decision and turnaround time on a HELOC, is to go with an experienced HELOC lender.
Get Pre-Qualified from an Experienced Lender
Time Bank is an experienced HELOC lender. Send us an email at [email protected] to learn more.
Time Bank is a Member FDIC, Equal Housing Lender.