What is a HELOC?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A HELOC is a home equity line of credit — a revolving credit line secured by your home's equity. You draw funds as needed during the draw period and pay interest only on what you use.
It's flexible for renovations, emergencies, or large expenses, and it lets you keep a low first-mortgage rate untouched. Rates are usually variable. We'll compare it to a cash-out refinance for your situation.
A flexible equity line
A HELOC is a home equity line of credit. It lets you borrow against your home's equity up to a set limit, drawing funds as you need them and paying interest only on the amount used.
It works much like a credit card secured by your home.
Common uses
Homeowners use HELOCs for renovations, debt consolidation, tuition, or a ready cash reserve. Because it is secured by your home, the rate is usually lower than a credit card.
We will show how much equity you can tap. Apply now and we will explore a HELOC for you.