CharterStone Mortgage offers first and second HELOC simultaneous closing loans only on purchase transactions.  We do not offer stand alone cash out refi HELOCS.

What is a HELOC?

A Home Equity Line of Credit, also known as a HEOC, is a revolving line of credit secured by your home. A HELOC normally requires interest only payments for a period followed by a repayment period. The loan may be a first or second mortgage.  

How Does a HELOC work?

With a HELOC, you’re borrowing against the equity of your home. You may draw from the line and pay back like a credit card. You may borrow and repay through the draw period, typically for 10 years. In addition, during this time the minimum payments are interest only based on the previous months balance. However, you may pay down the balance at any time.  At the end of the draw period the repayment period begins. Normally, this is for another 10 years whereby the borrower pays principal and interest until the loan is repaid in full.

What is the interest rate for a HELOC?

The interest rate is variable based on The Wall Street Journal U. S. Prime Rate. This rate is added to a margin that is constant through the life of the loan. The margin is determined by criteria such as credit score and amount borrowed. 

How much can I borrow on a HELOC?

The HELOC is for primary, second home/vacation home properties. Investment properties are not eligible for this program. You may borrow up to 89.99% of the appraised value. The qualifications are the same as for a first mortgage. Please consult with a CharterStone Mortgage  loan advisor for details.

**CharterStone Mortgage is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

Programs are subject to change without notice. All applicants must meet underwriting guidelines from the lender that are subject to change without notice and must meet all Federal and State regulations. This information is not guaranteed to be accurate due to changing financial and economic environment.  

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