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Home equity line of credit
If you need to borrow money to pay off debts or make a major purchase, a home equity line of credit (HELOC) can be useful. A HELOC is a form of revolving credit secured by the equity in your home. This is an open ended loan that can be paid down or charged up for the term of the loan, much like a credit card. The interest rate fluctuates (typically monthly).
With a HELOC , you will be approved you for a specific amount of credit - the maximum amount you may borrow at any one time under the plan. In determining your credit limit, your income, debts, credit history and other financial obligations will be reviewed. An appraisal will sometimes be required on your home to determine the home's market value. Your credit limit will be based on a percentage of your home's appraised value, which is then subtracted from the balance owed on your existing mortgage. To find out what your home is worth, click here HomeMarketValue
When you take out a HELOC, many times the closing costs will be paid for by the lender/ broker.
Most HELOCs have a fixed period (5, 10, even 20 years) during which you can borrow money. Typically, you will use special checks or a credit card to draw on your line. You will be required to make a minimum payment each month usually the interest that accrued during the draw period. However, the interest you pay is usually tax deductible. At the end of your "draw period," you will be required to pay off the loan, making monthly payments on the principal and interest.
About DNJ Mortgage
Since 1989, DNJ Mortgage has helped families across North Carolina realize their homeownership dreams and save money when refinancing. We're a local company that is committed to providing exceptional customer service as well as by making owning a home affordable by offering agressive interest rates, a wide variety of loan programs and by specializing in zero closing cost loans with no hidden fees.
With offices in Raleigh, Greenville, and Wilmington, NC, we serve homeowners and buyers across North Carolina. DNJ also offers mortgages in Maryland, Virginia, South Carolina, Georgia and Florida. Where ever you live in the Southeast, trust DNJ to help you find the right home loan for your needs.
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