Home Equity Loan and Line of Credit
What is a home equity loan?
A home equity loan (HEL) is a type of loan when the borrower is using the equity from their home as collateral. Most borrowers tap into their home equity to upgrade their homes, major home repairs, emergency medical repairs, college education, or any other major expenses. Most home equity loans require good to excellent credit history and a reasonable loan to value or LTV ratios.
What is a HELOC?
Home Equity Loan of Credit or HELOC is a revolving credit line which comes with an adjustable interest rate. The
main different between a HELOC and the home equity loan is that the home equity loan has a fixed interest rate.
How do I apply for a home equity loan or line of credit?
Before obtaining a home equity loan, you must be aware of possible fees associated with these type of loans. These may include the following:
- Appraisal Fees
- Arrangement Fees
- Closing Fees
- Early Pay-Off Fees
- Orgination Fees
- Stamp Duties
- Title Fees
- Processing Fee
Related Home Equity Resources
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