What exactly is a HELOC?
A HELOC works similar to a credit card. You’ll have a credit line (meaning you can borrow up to a certain amount) and can take out funds at any time You pay interest only on the funds withdrawn. The interest rate is typically far lower than credit cards, because you are using the equity in your home to secure the loan.
You keep your existing low interest first mortgage and get to use the equity in your home for debt consolidation or for a special purpose, or both.
Can I use a HELOC to consolidate debt?
Absolutely! It’s one of the best features of a HELOC. Credit cards can be as high as 30% interest, which is why many people never seem to get rid of credit card debt. A HELOC rate is far less, and because you only pay the interest, the monthly payment savings can get your monthly cash flow back under control. You pay down the balance by paying more than the minimum payment.
Are there credit score requirements?
We can go as low as 640. This is lower than most banks (usually 720+).
How is my credit line determined?
Credit line is determined by how much equity you have. We’ll do a desktop appraisal to determine value. It is also determined by your income.
Can I pay down the balance, then take funds out again later?
Yes,
Does this take a long time?
How does a few days sound? Here’s where we differ from most banks that take weeks or months.
Is the rate fixed or adjustable?
Most HELOCs are an adjustable rate.
How are payments determined?
Minimum payments are paying just the interest on the amount withdrawn. While this gives you the most benefit to stabilize monthly cash flow.
What is my potential cash flow savings, and what I qualify for?
2 options:
- Complete the application: www.apply-with-matt.com and you can have an approval as soon as the day after you complete your application
- Use the form at www.call-with-matt to schedule a 15 minute call, and I can give you a rough idea of monthly savings. Calls with Matt are a no-obligation, no-pressure zone.
