HELOC

Home Equity Line Of Credit

What's a HELOC?

A Home Equity Line of Credit (HELOC) is a flexible financial product that allows homeowners to tap into the equity they have built up in their homes. Equity is the difference between the current market value of a home and the outstanding mortgage balance.

With a HELOC, homeowners can access a line of credit that is secured by their home's equity. This line of credit works much like a credit card, where borrowers can withdraw funds up to a certain limit whenever they need them. HELOCs typically have a variable interest rate, which means that the interest rate can change over time based on market conditions.

One of the key advantages of a HELOC is its flexibility. Homeowners can use the funds for various purposes, such as home improvements, debt consolidation, education expenses, or any other financial needs. They only pay interest on the amount they borrow, and they can repay and reuse the funds as needed during the draw period, which usually lasts for several years.

HELOCs are a popular option for homeowners who want access to funds without taking out a traditional loan or refinancing their mortgage. However, it's essential to understand the terms, including interest rates, repayment terms, and any associated fees, before obtaining a HELOC. Additionally, it's crucial to use the funds responsibly and manage the repayment to avoid potential financial risks.

Best Use Case:

HELOCs have gained popularity as a solution for families seeking additional funds by leveraging their home equity, all while maintaining their existing mortgage rate without the need for a complete refinance, especially those that purchase or refinanced during the pandemic's low interest rate period.

Is a HELOC right for you?

We'll help you assess whether a HELOC aligns with your financial goals and provide insights to make an informed decision.

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Equal Housing Opportunity © 2023 Apache Mortgage Inc, 695 Town Center Dr., Suite 1200, Costa Mesa, CA 92626, 949-799-4329. NMLS ID # 2454357 DRE # 02209550. For licensing information go to www.nmlsconsumeraccess.org. Trade/service marks are the property of Apache Mortgage Inc and/or its subsidiaries or affiliates. Information is intended solely for mortgage bankers, mortgage brokers, and financial institutions. For more information, review Apache Mortgage Inc's state licenses and important notices. Co-op loans not available. Some products may not be available in all states. Information, rates and pricing are subject to change without prior notice at the sole discretion of Apache Mortgage Inc, Mortgage Broker. All loan programs are subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions apply. [06-2023]