Your richest source of cash is the equity in your home. Use it to secure a home equity line of credit (HELOC). This is a revolving line of credit, which allows you to access additional funds as you need them now and in the future. Generally it has a lower cost than a traditional loan or credit cards.
By using your equity, you do not need to withdraw from your savings. Use your HELOC for education, pay for renovations, make an investment and many other uses. The interest can also be tax-deductible.
The best scenario for getting a HELOC is when you do not have a mortgage on your property or a very small mortgage. How do you determine what your equity is? Find out the appraised value of your property, find out the mortgage amount, then subtract the mortgage amount from the value. For example:
appraised value $950,000.00
mortgage loan $223,000.00
equity $727,000.00
In order to get a HELOC the total amount of money borrowed against the property can only be 65%. In this scenario, 65% of $950,000 equals $617,000. Therefore, if you needed more money you could get a HELOC for up to $394,000.00.
Our expertise keeps your most valuable asset safe through the mortgage loan process. We help you achieve financial security and a peace of mind.
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