A home equity line of credit, often thought of as a second mortgage allows the dispersal of the loaned funds at any time the borrower chooses, instead of all at once like a traditional mortgage. HELOCs are a great way to get money you need for other things: college, credit card payments, and unexpected expenses.
On every HELOC, there is a “draw period,” typically 5-15, years during which a borrower can use the funds from a HELOC, and a “repayment period,” usually 10-20 years, to repay the loan.
If you make a large draw, that amount may be able to be converted to a fixed-rate loan at the time of drawing, giving you options when you run into large expenses.
If you are interested in taking out a home equity line of credit, talk to one of our brokers today.