HELOC is a simultaneous 10/20 Home Equity Line of Credit. It offers borrowers the flexibility to take additional draws and remains open so that borrowers have access to their equity to spend as they wish.
LOAN PURPOSE: Refinance 2nd lien only.
BORROWER TYPE: Home Owner.
INTEREST RATE: Interest Only, does not affect the first mortgage payment.
MINIMUM FICO: 680.
MAXIMUM LOAN TO VALUE (LTV): 85%-90%.
PROPERTY TYPE: 1-4 Unit, PUD and Warrantable Condos
Will this loan affect my first mortgage payment?
No, this is a second lien that will be placed on your home and will not interfere with your current mortgage payment.
Is this a large sum of money I will recevieve upfront or in payments?
No, this is actually a revolving line of credit that you may draw from and pay back in monthly payments.
Whats are the benefits of using this versus a Texas Home Equity Cash out loan?
This loan may be a better option for clients who need varying amounts of cash at different times and would like the flexibility of paying it back in lower interest only payments.
This is also ideal if you currently have a low mortgage rate on your loan and do not wish to interfere with it.