Five Reasons Why Every Homeowner Needs A HELOC

Home Equity Line of Credit. This is a powerful opportunity for homeowners and another wonderful option in investing in ourselves.

A HELOC is a revolving credit line that’s secured by the equity we’ve built in our home. Our HELOC can be used as needed during the draw period, which is the timeframe between opening it up until our repayment begins. As of the release of this article, U.S. Bank’s HELOC draw period is 10 years with a 20-year repayment period.

In most cases, we can qualify for up to 80% loan-to-value – meaning, up to 80% of the total equity we’ve acquired in our home. As a loan officer, I can provide my qualified clients a HELOC of up to $350,000 – with options of higher amounts if needed.

Imagine the possibilities!?

Once we’re approved, we can use these funds for almost anything we want – lowering high-interest debt, education, emergencies, home improvements, and more.?

Here are my favorite five:

1. Immediate cash when we need it. It’s already approved and accessible to us with a simple withdrawal or transfer to our account. This can be done online and at any time. Customers who obtain a HELOC at U.S. Bank can draw from their HELOC up to three different times on the same HELOC – and lock in their rate each time, if they desire. Even better…
2. It’s free. In other words, in most cases there are no application fees or closing costs, and the interest may be tax deductible. After we are approved and have access to our funds, we still pay…
3. No interest rates until we use it – and ONLY on the amount we use. For instance, if we have a HELOC for $250,000 and we use only $20,000 of it, we pay interest only on the $20,000. Qualified borrows also benefit from interest-only payments, meaning, no principal payments. What’s more, this option give us…
4. Low interest rates. First, our monthly payments are interest-only for the first several years, and before it comes time to pay on principal, we simply refinance. This allows us to continue to our interest-only payments. Plus, in general, HELOC interest rates are much lower than credit card rates, so we save even more of our hard-earned cash, plus…
5. It further builds our credit. As with other loans and revolving credit, when we continue to make our payments on time, pay back the amounts we draw, and maintain open credit and loans – we can improve our credit score.?

Obtaining a HELOC is quick, simple, and can be done entirely online. It’s one of my recommended ‘must have’ items for homeowners.?

Now, if you don’t YET own a home, I can help there as well. ???

Yours,

Blaise