An introduction to HELOCs and how they work
=====================
Video Description:
Though they aren't actually a type of refinance loan, HELOCs—or home equity lines of credit—are another way to access your home's equity. This means you get to keep your current low mortgage rate while still tapping into your home's equity.
HELOCs are a revolving line of credit based on your home's equity at the time you open the account. Essentially, this means that they sort of function like a credit card where the rates are adjustable and you are able to pay off your balance which replenishes how much credit you have available.
However, the ability to withdraw money from equity is actually limited to the HELOC's draw period, which is usually 10 years. After that, you enter the repayment portion of the loan. HELOCs definitely have their pros and cons, and there are lots of factors you should consider when deciding if it's the right option for you. For more guidance on making that decision, check out this video: • Which is better in 2022, a HELOC or a VA c... .
=====================
Give us a call today! 844-326-3305
Not ready to call? Text us! 385-257-3266
=====================
Want more from Low VA Rates? Like, subscribe, and follow us to stay connected with the latest VA home loan info.
=====================
DISCLAIMER: Eric is not a licensed loan officer. All advice given is for informational purposes only. For more detailed information, please call in and ask to speak with a licensed mortgage loan originator. This video is not applicable to borrowers in the State of Washington.
This video is not intended for residents or homeowners in the states of NY or MA.