What’s a home equity line of credit?
Home equity lines of credit (HELOCs) are revolving lines of credit that use your equity as collateral. Like with a credit card, you can borrow as much as you need, so long as it’s within your limit. You must then make payments on what you borrow, with interest added.
A HELOC is a good choice if you need access to additional funds over a longer period of time—like in the case of renovations or home repairs.
What’s the difference between a HELOC and a home equity loan?
Since home equity loans let you access a certain amount of your equity without refinancing, they are very similar to HELOCs.
The key difference is that home equity loans are a one-time, lump-sum arrangement. You get the money, and then you pay it off over a fixed term, almost like it’s a second mortgage.
A home equity loan may be a better choice for you if only need money for a one-time purpose.
Why pick Total Mortgage?
After 17 years of success, it's safe to say that we know what we are doing. Plus:
- We have some of the lowest interest rates in the country, and we might be able to cut your mortgage payments considerably.
- No pre-payment penalties, ever. Go on, pay off all your debt as fast as you can. We promise not to get grumpy about it.
- No pushy loan officers, just experienced professionals who will educate you as they help you get the financing that makes sense for you.
For this and other options for using the equity in your home, give us a call or fill out the form on the right.