Line of Credit
Using a home as collateral, a line of credit can be extended to the homeowner.
Once a maximum loan balance is established, the homeowner may draw on the line of credit at his or her discretion. Interest is charged on a predetermined variable rate, which is usually based on prevailing prime rates.
Once there is a balance owing on the loan, the homeowner can choose a repayment schedule as long as minimum interest payments are made monthly. The term of a HELOC (Home Equity Line of Credit) can last anywhere from less than five years to greater than 20 years. To close the HELOC the entire balance must be paid in full.
If a Home Equity Line of Credit meets your family’s needs please call Visdom Mortgage Solutions to discuss a HELOC in more detail.