Fraipont & Manyk

REAL ESTATE TEAM

Blog

What can a Home Equity Line of Credit do for you!

If you're thnking of getting financing for a home improvement project, you can see if you qualify for a home equity line of credit (HELOC) to fund your dreams. A HELOC allows you to borrow money by using your home's equity as collateral.


You would qualify for a specific borrowing limit, and then you can choose to borrow as much of that as you want and make minimum interest only payments. It's similar to a credit card or personal line of credit, in that you withdraw money as you need it and only pay for what you borrow.


Basically a home equity line of credit is revolving, meaning you can use the money, pay it off and use it again.


A HELOC example:


Suppose you purchased a home for %10,000 and have paid off $200,000 and have a mortgage for $310,000. For simplicity's sake, the house is still worth $510,000, leabing you with $210,000 in equity. You could then potentially qualify to get a HELOC for $98,000 as max loan to value is 80% for refinancing purposes.


This works out to (%510,000 X 80% = $408,000 then subtract the mortgage of $310,000) leaving you with a potential HELOC of $98,000.


For more info please click on this link to take you to our Finance section. Here you can fill out your information so we can help find the appropriate person to help you with any of your financing needs!


Please also call us with any other Real Estate questions that we can help you with! 604.466.2838

Comments:
No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.