How Does a HELOC Work?

Looking for a Home Equity Line of Credit? We'd be thrilled to talk about our many mortgage solutions! Give us a call at 773-755-9200. Ready to get started? Apply Here.

A home equity line of credit (HELOC) can be helpful when you are looking to borrow a lump sum to remodel your home, make a large purchase, or consolidate debt. A HELOC is a form of revolving credit secured by your home equity. This open-ended loan may be be charged up or paid down over the loan term. The interest rate can fluctuate (generally monthly).

In a HELOC, your lending institution will approve you for a particular amount of credit - the largest amount you may borrow at any given time. In setting your credit limit, your salary, outstanding debt, credit status and additional financial obligations will be reviewed. You are required to have an appraisal of your home to assess your home's up-to-date market value. Your property's current value, subtracted from your remaining mortgage balance helps to set your specific credit limit.

American Financial Solutions, Inc. can walk you through the process of getting a Home Equity Line of Credit. Give us a call at 773-755-9200.