Home Equity Line of Credit- this is what HELOC stands for.
If you’re a homeowner and you’ve been paying your mortgage for however many years you’ve owned it, it doesn’t matter if the mortgage is completely paid off your house or not, your home now has equity appreciation.
Equity appreciation is how much value your home has grown in the eyes of the bank or your lender.
How is this advantageous to the owner?
Let’s say you want to buy a second property but you don’t have enough money for a down payment.
With a HELOC you are leveraging your existing home. The bank will take a look at the status of your mortgage to determine how much equity is in your home based on your home’s value in the current market. Based on this you can take out a line of credit to use as down payment for your next home. Whether it’s an investment for yourself, or a home for your children, spouse, or even your dog.
This is how HELOC can help you.
Find out what kinds of investment strategies would work best with you by contacting Jas Oberoi.
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