Home equity lines of credit are very similar to revolving credit accounts, except, home equity lines of credit are secured by the equity in your home. Since your home is most likely one of your largest assets, many homeowners obtain home equity lines of credit for home improvements, education costs, medical expenses, or to simply reduce credit card debt. Keep in mind, there is no minimum draw requirement; you can close and not draw money until you desire.

Consider this. Why not incorporate the equity in your home into a new home equity line for emergency availability? What if you lost your job; then couldn’t qualify for another mortgage? If you simply had taken out a home equity line and never used it; you could financially take care of yourself and your family until your situation improved. In fact, tapping into your home’s equity with a home equity line of credit, is becoming increasingly popular especially with low interest rates and potential tax deductible benefits.

Depending on your credit history and credit scores, it’s possible to borrow 90%, 95% and even 100% of your home’s equity. Equity is defined as the difference between the fair market value of your home and the remaining balance on your existing mortgages. Most homeowners are quickly learning that the equity available in your home can be put to better use.

The payment, with your home equity line of credit, is typically based on the outstanding balance at the current Prime Rate, as published in the Wall Street Journal, plus a fixed margin. The margin, which varies from 0% to 3%, is determined by a few things such as credit scores and exactly how much of your home’s equity you utilize. As with most home equity lines of credit, the minimum payment required is merely the interest only. Most homeowners enjoy the ability to prepay the mortgage and reduce the principal amount owed; which in turn, helps to reduce the interest only payment. Remember, your payment is based on the outstanding balance.

At BeechTree Mortgage, we have several home equity lines of credit programs to suit almost every client scenario. Most of these require little or no documentation, no appraisal*, and 24 hour approvals. Our most popular home equity line of credit program is available with no closing costs with interest rates as low as the Prime Rate. Call us today at 888-399-0520 and get the cash you need.

* Appraisal is usually obtained electronically, but a full appraisal may be required if the automated appraisal cannot be done. Apply Online for a Home Equity Line of Credit

Contact BeechTree Mortgage and we will provide a very accurate Good Faith Estimate and answer any questions you have regarding this article. Call now at 1-888-399-0520