Do you know what HELOC means? Well, as a home owner this is very important to know and understand. HELOC means Home Equity Lines of Credit. A HELOC, allows you as the home owners to borrow funds against your home. You can use those funds for various methods in which you see fit. For example, renovations, paying down debt, downpayment on an investment property, or buying a new car.
If you are deciding on receiving a HELOC, please do your due diligence prior to actually receiving the funds. Speak to your financial advisor.
Here are a few aspects to know about HELOC.
1) The financial institution in which you receive your HELOC will put a lien on your home to guarantee the loan.
2) If you have a mortgage on your home already. The financial institution will place a second mortgage on top of your current mortgage. Or they can modify your current mortgage plan to capture all of the equity.
3) HELOC, could negatively affect your credit score if you don't pay the loan back and the home is foreclosed.
Having a HELOC, can open new avenues to living well. As long as you are aware of the facts prior and remember to pay back the loan. Before making any commitment, speak with your financial advisor.
Don't forget to subscribe to the blog to receive new blog posts. Follow us on Facebook, Twitter and Linkedin.
Take care,
MyDaddyHomes
No comments:
Post a Comment