What is a HELOC? A home equity line of credit is a 2nd mortgage that can be used like a credit card using the equity of your home. In this video, we talk about HELOCS and how in this market it likely makes more sense to refinance than to get a second mortgage.
What is a home equity line of credit?
A HELOC, or home equity line of credit is a second mortgage in which the lender agrees to lend a maximum amount within an agreed period, where the collateral of the borrower’s loan is the equity in the home.
Can a heloc be used to purchase a home?
Yes you can use a heloc to purchase a home but keep in mind if you are getting a loan the lender will take into account the payment on the equity line for qualifying purposes.
Can i sell my house if i have a heloc?
Yes, you can sell your house if you have a home equity line of credit but it will need to be paid in full at the closing in order to successfully close escrow.
How Heloc works?
A home equity line of credit, or HELOC, is a line of credit (access to cash) on your home’s equity up to a certain loan to value that is similar to a credit card in that you can use it and repay it back and use it again.
Does heloc require appraisal?
It all depends on the lender and whether or not you receive an appraisal waiver. If you are taking a higher loan to value then the lender could require an appraisal but in some cases when you have a lower LTV, you can receive an appraisal waiver where no appraisal is required.
Can i transfer my heloc to another bank?
No, in order to move your Heloc to another bank you will need to get a new heloc with the bank you are wanting to go to and pay off your current heloc with the new loan or refinance both loans into 1 new loan at whatever bank you choose.
Do you have questions about doing a HELOC or getting a second mortgage? If so, please comment below or contact me directly.
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