Ever wondered about Home Equity Lines of Credit (HELOCs)? Let’s break it down:

A HELOC isn’t a traditional mortgage but offers a revolving line of credit secured by your home. You use what you need, make monthly interest-only payments, and then start repaying the principal.

Unlike a home equity loan, which provides a lump sum secured by your home equity and typically offers fixed interest rates. During the draw period, you make interest-only payments, and after, you repay the principal. Qualification depends on factors like credit score, equity, and income.

HELOCs are ideal for home improvements, debt consolidation, education, and more! No restrictions on what you can use HELOC funds for, but use them wisely.Max HELOC amount: Up to 85% of your home’s value minus your outstanding loan balance.

Closing costs for HELOCs are typically lower than traditional mortgages.

HELOCs can be a powerful financial tool, but they come with responsibilities. If you’re considering one, make sure to explore your options, understand the risks, and consult a professional for advice. Your financial journey is unique!