Home Equity Line of Credit (HELOC) Basics

Must Read

Business Blogging – You travel on the train?

If you have a business, you should have a blog. This applies regardless of whether your business is online...

The Crime of Driving Without a License in California

Under California law, individuals who do not have a valid driver's license are not allowed to drive on California...

Obama’s Home Stimulus Package – Mortgage Refinance and Loan Modification Lower Payments

The government stimulus package for struggling homeowners is called Making Home Affordable. It has two basic options for homeowners...

Home Equity Line of Credit (HELOC) is term to describe loans that uses a borrower’s home as collateral. Also referred to as home equity line, lenders determine the maximum loan balance available where homeowners could draw credits at their judgment. Like all typical loans, a predetermined interest rate is agreed upon based on current market rates.HELOCS should not be confused with other home loans such Reverse mortgages for example. Unlike Reverse Mortgages, the total amount of credit could not be released upfront but funds could be steadily drawn from the credit in a period usually lasting anywhere from 5 to 25 years. Borrowers are not required to make immediate payments on the drawn funds, only that they make a predetermined minimum payment.Loans could be paid in increments during the draw period but all remaining balance must be paid before the loans maturity date. At the end of the draw period borrowers are expected to payback the full principal of the loan made. They are also required to pay a HELOC balloon payment and male payments based on a loan amortization schedule.These types of loans offer borrowers a degree of flexibility in terms of loan repayments. Homeowners may choose a number of payment options which only require them to make pre agreed minimum interest payments.HELOCS are similar to having a credit card line. Credits are drawn in a specific period against the maximum available home equity. Like credit cards, borrowers are required to make minimum monthly payments until credit are fully paid.


Please enter your comment!
Please enter your name here

Latest News

Top 10 Provinces of Thailand Not to be missed for Travel

10 SuratthaniThe source of the proverbial Chaiya salted egg. Surat Thani is a province with many attractions,...

Underlight As Accent, For Power and The Main Light for Photography

Underlighting, in which fill or accent light comes from under the topic, is not widely used technique in the traditional Portraits, even though it will have...

How To Fix Overexposure As A Creative Tool, The Complete Guide

As an creative tool, overexposure is sort of underrated. What I’m close to propose could be a deliberate and well thought out technique for...

7D Mark II is Canon’s best DSLR cameras without full-frame sensor.

The expected long-awaited Canon EOS 7D Mark II are shipping in November for $ 1,799 without a lens. With a higher price tag, you...

Low key photography and How to isolate your subject.

Low key photography doesn’t depend on underexposure to make its point; the key to low key is that the majority of tones, even correctly...

More Articles Like This