The home equity line of credit

Securing a home equity loan or line of credit

If you are a home owner, you have the option of using the equity you have built up in your home to lower your borrowing costs. This is very cost-effective. Often, home equity loans and lines of credit can offer you a lower interest rate as compared to other types of loans. This provides you with access to credit for unexpected expenses or home improvement projects.

You can usually borrow up to 80% of the appraised value of your home. Use the credit to fund other priorities, such as home improvement projects, debt consolidation, a new car, going on vacation or your child’s education.

Manage your mortgage and personal credit under one plan

Some financial institutions offer the option of managing your mortgage and your personal credit under one plan. It’s also a great way to save money: consolidate any existing debts in your line of credit, under a lower interest rate.

Let the equity in your home do all the work

Use the borrowed money with your home equity line of credit any way you like. Some plans ensure that as you reimburse the remaining balance on your mortgage, your main line of credit limit automatically increases. This way, you will have access to additional credit, when you need it.

Split your mortgage between fixed and variable rates

Split your mortgage and get the best of both worlds: both fixed and variable rates! The variable rate lets you take advantage of potential long-term savings, while the fixed rate protects you when rates rise. Seek the expertise of a mortgage consultant to see how you can get the most from your home equity line of credit.You don’t have to make this decision on your own. Call me!