A Home Equity Line of Credit Loan lets you pledge a part of the equity in your home in exchange for a Line of Credit from which you can repeatedly borrow over a 5 year period. Home Equity Loans are a variable rate loan but have lower origination costs compared to 1st or 2nd Mortgage. The interest rate may change every 3 months on February 1st, May 1st, August 1st and November 1st.
Estimating your maximum Home Equity Line of Credit is easy:
- Determine the value of your home based on either a recent appraisal or a Market Value Assessment. (You can use your property assessment value from your county as a rough estimate, but an appraisal or Market Value Assessment will be required.)
- Deduct all mortgages, including Home Improvement loans and other liens.
- This is your “equity” in your home. Your maximum Home Equity Line of Credit will be about 80% of this amount.
Contact a Loan Officer for more information, application and disclosures package (including fees and costs) and the current interest rate.