Home Equity Line of Credit                                                                                                                             

A home equity line of credit or HELOC usually has a floating interest rate tied to the Prime Rate and allows you to take equity out of a property when you wish. Of course, you incur interest costs only on the money taken out. It can be a good choice if your needs are expected to be episodic. 

A major advantage of the home equity line of credit is that your interest costs are tax deductible. A comparison between the after tax costs of the HELOC and any consumer loan should be done before any major purchase. Please give me a call if you need help with the calculation.

We can lend up to 100% of the value of your home but understand that the interest rate will be somewhat higher if your line of credit is over 80%(combined first trust and HELOC) of the value of the property. We will allow up to a 50% Debt to Income ratio (DTI) with good credit. Please see the link below for more information on qualification ratios.

Common uses of a Home Equity Line Of Credit

• Debt Consolidation. If your other debt is too much you may dramatically reduce your monthly payments. See the calculator below for an idea of how much you could save.

• Finance a Major Purchase. If a new car or boat is in your future, you may want to compare payments.

• Children's Education. Many people find a HELOC the most logical way to pay for their children's education. Exactly what I did when my son went to college and I saved a lot of money compared to any other option.

• Property Purchase. If you are considering either an investment in income producing real estate or a vacation home, it may make more sense to unlock the equity in your home rather than move the cash from other investments which are doing well for you. Please see my pages on Investment Property or Vacation Homes for more information.

I have included a page on how to calculate your qualification ratios.

I have included a page on documentation requirements.

Wet offer you the ability to qualify and close into several unique programs which accommodate borrowers with non traditional income or asset situations. 

* I have included a section on the new Cash Flow ARMS. A LIBOR based product which gives you complete flexibility in managing your mortgage.