Home equity, the difference between the amount your home could sell for and the amount you owe on your home, may be an available source of cash. You may be able to access that cash via a home equity loan, frequently styled as a second mortgage, or a refinancing, where you pay off your existing mortgage with a new mortgage that is for an amount larger than the amount needed to pay off your existing mortgage. The excess cash is yours to use as you please.
A Home Equity Line of Credit (HELOC) is a loan provided by a lender that allows you to borrow against the equity in your property (the difference between the amount owed on your home and the value of the home). This revolving line of credit is secured by a mortgage on your property and will have a maximum loan amount that can be withdrawn from over a set period of time, the draw period. HELOC’s are often used to make large purchases, home repairs, payoff high interest credit cards, additional real estate purchases, or are opened as a go-to fund for emergencies.
If you are considering opening a HELOC or need a real estate attorney to oversee your closing, please contact our real estate lawyers at (888) 988-6613 or online.
If You Are Contemplating a Home Equity Line of Credit, Talk to Our HELOC Attorneys
As you consider how or whether to borrow against the equity in your home, you should talk to Tien Law Firm’s real estate attorneys. We are familiar with home equity borrowing and HELOCs, and we can help you make the choices to help you reach your goals.