A Home Equity Line of Credit (HELOC) is an excellent alternative way to borrow. With a
HELOC, your home’s equity becomes collateral to provide you with a source of accessible
revolving credit. You decide how much credit you need, when you need it, then repay it when
you can. There is never a penalty to pay off your balance. A HELOC is flexible compared to a
traditional loan which is not. Once approved, a line of credit can be accessed any time, for any
amount up to your limit. With a loan, you need to re-apply every time you want more funds.
HELOCs have low interest rates (as low as Prime Rate +0.50%), making them less costly than
credit cards and personal loans.
A HELOC is an essential asset for today’s homeowner and investor– you are only charged
interest on the amount you use, not your available balance. The majority of HELOC’s include
interest-only payments and you can pay any amount towards your balance penalty free.