Home Equity Line Of Credit
A home equity line of credit (also know as a HELOC) is a revolving loan that is secured against your Property. A HELOC is a flexible lending product that is similar to a credit card, but has a significantly lower interest rate. Like a credit card you have a credit limit and pay the interest only on what you use.
Benefits Of A Home Equity Line Of Credit
Flexibility: 
A HELOC is an extremely flexible lending product. With a HELOC you will have a credit limit and are only charged interest on the money you use. This loan can be paid in full at any time without a penalty. The portion that you pay back will also be available for you to take access again. This is great for people with unexpected expenses such as the self employed. These loans can be secured as a first mortgage or second mortgage. Your first mortgage must be with a financial institution if the HELOC is secured as a second mortgage.
Low Interest Rate:
A HELOC often has an interest rate that is significantly less than the interest charged on a credit card. There is less risk to the lender since your loan is secured against your property. The reduced risk results in interest savings for you. In most cases the interest rate is lower than that of a second mortgage.
Qualification:
You will need to be able to prove your income in order to qualify. There are stated income programs available for the self employed who may not declare all their income. You are able to qualify even if your credit is not the greatest.
A HELOC is an excellent and flexible lending product that can provide continuous access to funds, and potentially save you thousands in interest and penalties because the loan is fully open. Contact me today to find out if a home equity line of credit is right for you.
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