HELOC-HOME EQUITY LINE OF CREDIT

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. Making principal payments during the draw period will reduce the minimum monthly payment.

How is a HELOC used?

A HELOC can be used in several ways. For example, used to prevent paying mortgage insurance on a purchase.  Instead of putting down 10% and paying mortgage insurance. Combine an 80% first mortgage and 10%   HELOC.  In addition,  as the HELOC is a relvolving line of credit for a period of time.  Some additional ideas for uses are:   

  • Consolidate debt
  • Home improvement
  • Help with costs of higher education
  • Pay for a wedding
  • Large purchases
  • Vacations

How much can I borrow on a HELOC?

The HELOC is for primary, second home or vacation home properties. 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.

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Get Pre-Approved Today

We will pre-approve you in minutes. Let's make you a preferred buyer with a
Certified
pre-approval letter.

Call us today

We are avaialble 7 days a week by phone, to meet in person or apply on line.

Scroll to Top