A home equity line of credit is offered by MidCountry Bank as a borrower's vehicle for home improvements, debt consolidation, or simply acquiring 'star' purchasing power.
As MidCountry Bank continues to work with you after your mortgage loan has closed, we have a firm eye on your financial future. While planning is essential in making the best decisions in regard to homeownership, flexibility is almost as important, due to volatility of financial markets and other unpredictable events. This is when the home equity line of credit option could prove very beneficial.
How Does a HELOC Work?
You may qualify for a home equity line of credit if you have achieved a certain level of equity in your home: when the amount you owe on your mortgage is less than the amount your home is worth.
A HELOC is a revolving credit line with a variable rate, operating very much like a credit card, but with one substantial difference: instead of a credit card company covering your expenditures, you are using the equity in your home as the collateral. That is why it's a good idea to shop for a HELOC that only modestly exceeds the amount of available credit you plan to use.
The versatility of a HELOC makes it an attractive financial option for many customers. It can be used to consolidate higher interest rate debts, have extra cash for a special event or vacation, fund school tuition, or decorate the den. With its tax deductible interest status, a HELOC can be a helpful budgeting tool; we encourage you to consult your tax advisor regarding the deductibility of interest and charges under the HELOC plan.
As you repay the balances on your HELOC, you rebuild the amount of available credit, which means you can borrow money again up to your pre-set limit. Typically you can draw money from your HELOC for up to 10 years, with an up-to-15-year repayment period. Is a HELOC for YOU?
While a HELOC gives you financial flexibility in credit use, you may want to consider carefully the upfront fees (as in application and/or appraisal fees), the variable rate, the amount you want to borrow, and whether you are certain you can pay back the debt at the end-of-draw period. Since your property is the HELOC security, it's prudent to borrow conservatively.
If you're interested in qualifying for a loan, saving on taxes and interest, debt consolidation, cash management, home improvements, special events, or unplanned expenses, MidCountry Bank makes it easy. Call us today! We can help with superb financing solutions.
Complete Homebuyer's Mortgage Guide
Minimum and Maximum loan amounts apply. Rates and programs subject to change at any time. Loans subject to borrower qualifications, property evaluation and credit approval. All rates and program guidelines subject to change without notice based on consumer eligibility and marketing conditions. All loans subject to credit approval and compliance with underwriting standards.