Maximize The Value In Your Home With A HELOC
Buying a home is usually an excellent investment, allowing you to build equity over time in an asset that’s likely to increase in value. However, to access that value, your options are limited - unless you decide to sell the property or refinance your mortgage. A home equity line of credit, or HELOC, is one solution that allows you to use your property for funding to make major purchases without applying for a new mortgage.
How A HELOC Works
In a HELOC agreement, the value in your home is used to secure a revolving line of credit. Unlike a loan, as you make payments on your balance, the amount of available credit increases, much like a credit card. You can borrow as much or as little as you like, up to the limit decided upon when the line of credit was established.
Qualifying for a Home Equity Line of Credit To get approved for a HELOC, applicants must have equity in their home, meaning the property is worth more than they currently owe. Most lenders will allow you to open a line of credit of up to 85% of your home equity, as long as you meet their qualifying guidelines.
How HELOCs Can Be Used
Borrowers can use HELOC funds for any purpose they choose, such as making repairs and upgrading their homes, paying down debt, enjoying a great occasion like a wedding or vacation, or even purchasing another property. No matter what your financial needs may be, a HELOC can be an affordable way to meet them.
Cinfed’s HELOC program can offer benefits such as:
- Low rates (quarterly rate adjustments are based on the Prime Rate)
- Flexibility to securely transfer funds and manage the account via Digital Banking or the Cinfed Mobile App
Your home can be your greatest asset – and you can get the most from it with a HELOC.