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