Get low rates and flexible repayment with HELOC
At times, you may find yourself in need of some extra cash to pay for back to school costs, home renovation, debt consolidation, car purchase, medical emergency, etc. Under such scenarios, if you do not have any savings in your account then a home equity line of credit or a HELOC loan is a viable option to get funds, provided you are a homeowner. Besides, you can take advantage of low interest rates, financial flexibility and exclusive tax benefits.
A home equity line of credit is a revolving credit that allows, as a homeowner, to use the equity in your home to pay for your current and future important needs. Since these are secondary loans, the loan-to-value (LTV) ratio, in general, is set at 80% but not limited to. Although some line of credit against home even surpass 100% of the loan-to value ratio, they are bound to foreclosure risks.
The amount you can qualify through home equity line of credit although depends mostly on the appraised value of your house, some mortgage providers may also take into account your income, credit history and other debts. To know the LTV, simply divide your remaining mortgage loan balance by your residences’ current market value.
How does a home equity line of credit work?
Such a line of credit has two stages- draw period that is usually 10 years and a repayment period of 10-20 years. During the first phase, you are allowed to take out cash as you like upto your credit limit and you pay only the interest charges. The HELOC interest rates fluctuate in accordance with the market conditions during this period. Once the second phase, the repayment period, starts you are required to pay the house equity line of credit loan principal. At this point, the rates are fixed and remain unchanged until the balance is paid off. This also means, you can no longer borrow funds.
While few HELOC lenders allow you to pull money over a defined draw period and then renew the credit line once the period terminates, the others may not provide you the renewal facility. Also understand that some home equity line of credit plans instead of allowing you to make payments over the repayment period, will involve you to repay in lump sum once the draw period ends.
Greater financial flexibility with home equity loan line of credit.
Allows you to borrow cash as you need it and thus helps you manage cash flow
Serves as a better alternative to regular start-up business loan
Acts as a bridge loan while purchasing a new home or trading the old one
HELOC rates are comparatively lower than many other loans
Where to get the best home equity line of credit?
HELOC can be obtained from many lending sources; but if you are looking for convenience and speed of borrowing money, then online lending platform is the best place to get a home equity line of credit over a physical loan store.
MortgageLoanSpot is a one stop online lending network that can assist you with your borrowing needs when you want quick and easy cash against your house equity. We are not a direct lender, we are a loan broker with a vast and trusted net of best home equity line of credit lenders that can approve your request even when you have a bad credit score. Hence, loan product through us is also known as home equity loan bad credit.
Unlike traditional lenders that impose strict eligibility criteria, qualifying for a home equity line of credit through our online lending network is very easy because there is no collateral, no credit check, no paperwork and no outstanding credit score requirement. In addition, our lenders offer you the best home equity line of credit rates and terms.
With several direct lenders competing to offer you funds, it is easy to receive approval for home line of credit. Once you submit the completed online loan application, you will receive multiple loan quotes from us. Compare, choose and get started with the offer that meets your needs. Obtaining HELOC loans is this simple!
Do not wait to get help. Getting a HELOC online even with poor credit is fast and hassle-free with us. Contact MortgageLoanSpot right now and apply for home equity line of credit through our net of legitimate lenders.Apply Online
Home Equity Line of Credit