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Home Equity Lines

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Home Equity Lines – Pay Off Credit Cards
Pay Off Credit Cards and Save Money Every Month
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Know More about Home Equity Lines of Credit

home equity linesHome Equity Lines of Credit (HELOC) are credit lines that allow you to use your property as collateral to secure funds for home repairs, education, medical bills and more. However, your home is one of the most valuable assets that you have; therefore, you need to use it wisely. This program approves you for a specific amount of credit.

Setting the Credit Limit

Most lenders set a credit limit by calculating the percentage of the value of the home after appraisal and subtracting it from that the balance you owe on the existing mortgage. For instance:

Appraisal value $200,000
Percentage x80 percent
Percentage of appraisal value $160,000
Less balance owed on mortgage $50,000
Potential LOC $110,000

In this case, you qualify for a line of credit (LOC) of $110,000. Before you get the HELOC, the lender looks at your ability to repay the loan by considering your income, financial obligations and credit history.

The “Draw” and “Repayment” Period

Most home equity plans come with a fixed period during which you can borrow from the LOC. This is called the “draw” period. The period depends on the agreement. At the end of this period, you might be required to repay the balance within a specific period (repayment period) or renew the credit line.

How Can Centex Capital Help?

The HELOC program might prove a bit complicated for you especially if this is your first time using it, which is why we have experts to help you. This team understands what you need to qualify for the program, and the various costs you are supposed to meet before qualifying for the program. Our role is to help you understand the program and get a lender that can give you what you need at reasonable costs.


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