A home equity line of credit (HELOC) or home equity loan is a second loan against your home which generally has a very low interest rate. Because of the low interest rate attached to home equity loans, they can be the solution to many different problems: needing to finance renovations, pay for school tuition, or consolidate your debt.
Before applying for a home equity loan, you should first determine whether or not it's right for you, and we can help with that. The first step is to calculate the equity you currently hold in your home, which is calculated as the appraised value of the property minus any debts registered against it. For example, if your home is worth $500,000.00 and you have a mortgage with a balance of $300,000.00, you have $200,000.00 in equity. There are certain requirements that home equity loans must abide by - most lenders will not allow you to take out more than a certain percentage - but we can help you navigate the process, and get your most valuable asset working for you.