Second mortgage solution for a homeowner’s cash-out, debt consolidation, and home improvement needs.
A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher-interest rate debt on other loans such as credit cards. A HELOC often has a lower interest rate than some other common types of loans, and the interest may be tax deductible. Please consult your tax advisor regarding interest deductibility, as tax rules may have changed.
How a HELOC works
- Borrow up to 89.99% of your home value
- Minimum credit score 680
- Minimum loan amount of $100,000
- Payments can be interest-only
- No Pre Payment-Penalties for early payoff
- Draw additional funds as your balance comes down
- Fast approval and closing process
With a HELOC, you’re borrowing against the available equity in your home, and the house is used as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card. This means you can borrow against it again if you need to, and you can borrow as little or as much as you need throughout your draw period (typically 3-10 years) up to the credit limit you establish at closing.
Qualifying for a HELOC
To qualify for a HELOC, you need to have available equity in your home, meaning that the amount you owe on your home must be less than the value of your home. You can typically borrow up to 90% of the value of your home minus the amount you owe. Also, a lender generally looks at your credit score and history, employment history, monthly income, and monthly debts, just as when you first got your mortgage.
Variable interest rate
When you have a variable interest rate on your home equity line of credit, the rate can change monthly. The variable rate is calculated from both an index and a margin.
An index is a financial indicator banks use to set rates on many consumer loan products. Most lender, use the U.S. Prime Rate as published in The Wall Street Journal as the index for HELOCs. The index, and consequently the HELOC interest rate, can move up or down.
The other component of a variable interest rate is a margin, which is added to the index. The margin is constant throughout the life of the line of credit.
As you withdraw money from your HELOC, you’ll receive monthly bills with minimum payments that include principal and interest. Payments may change based on your balance and interest rate fluctuations and may also change if you make additional principal payments. Making additional principal payments when you can will help you save on the interest you’re charged and help you reduce your overall debt more quickly.
Fixed interest rate option
Fixed interest rate option available- CALL FOR DETAILS
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Eddie Hoskins Founder & CEO
Providing our customers with the lowest rates, personalized service, and loan options that you don’t get from big box lenders or banks. That’s he built E Zip Mortgage.
Why should you choose us for your home loan?
We work for you & not the bank, we offer wholesale mortgage rates which are lower than retail rates not to mention, we offer a wide variety of loan options so you’re not stuck with one set of restrictive underwriting guidelines.
Are credit scores a little low?
We have a credit score analyzing tool that can provide us with options to improve your credit scores quickly through a rapid credit rescore that usually takes 48 hours.
We’ve streamlined the mortgage process, and closed in 30 days or less.
From application to closing, all from the palm of your hand.