What is a HELOC loan?
A home equity line of credit is a loan set up as a line of credit for some maximum draw, rather than for a fixed dollar amount.
Who should get a HELOC loan?
Home-equity loans can be valuable tools for responsible borrowers. If you have a steady, reliable source of income and know that you will be able to repay the loan, its low interest rate and tax deductibility of paid interest makes it a sensible alternative.
What are the pros and cons of HELOC home loans?
- Convenient for funding intermittent needs, such as paying off credit cards
- Upfront costs are also relatively low
- Some HELOCs are convertible into fixed-rate loans at the time of a drawing
- It’s exposed to interest rate risk
- HELOC rates are tied to the prime rate, which some argue is more stable
- HELOCs have no adjustment caps, and the maximum rate is 18%
Why Trust Providential?
We’ll save you more money and will offer you low interest rates compared to the competition. If you apply for a HELOC home loan, you can save cash on your home loan and closing fees.
Providential has helped tens of thousands of borrowers find the perfect home loan option for them. Apply online today!
Other Loan Options:
- 30 Year Fixed Rate Mortgage
- 15 Year Fixed Rate Mortgage
- Jumbo Mortgages
- Reverse Mortgages
- FHA Loans
- Adjustable Rate Mortgages
- VA Home Loans
- Interest-Only Home Loans
- USDA Loans
- 203K Home Loans