Home Equity Line of Credit in Plano

With The Mortgage Ability, shopping for a home equity line of credit (HELOC) is simple. We connect you with trustworthy lenders in the area, making sure you’re in good hands. When used the right way, a HELOC is an asset and not a risk. We’ll give you the run-through of the advantages and disadvantages, so you’re fully aware of how it works.

Make the most of your Plano real estate investment with a home equity line of credit. Contact us now at (214) 293-9383 to explore the competitive line of credit rates.

What Is a Home Equity Line of Credit?

A HELOC is a secure form of revolving credit taken from your home equity. It is a convenient way to put your home equity to use before you sell it for profit. The lender sets a credit limit, and the borrower makes minimum repayments monthly.

Is It Better to Get a Home Equity Loan or a Line of Credit?

When deciding between a home equity loan or line of credit, it’s always a good idea to consult the professionals. There are significant differences you should be aware of as one may be a much better fit for your situation.

Home Equity Loan

A home equity loan is a fixed, one-time loan. There is much less flexibility than a HELOC. Also, as a rule, home equity loan interest rates are higher since the interest is on the lump-sum amount.

HELO

A home equity line of credit is an adjustable borrowing tool. You may borrow and repay as you go. Interest rates are minimal compared to a home equity loan, but it is easier to lose track of spending on a HELOC. Make sure to keep track!

How Does a Home Equity Line of Credit Differ from a Mortgage?

Much like a home equity loan and line of credit, a HELOC and a mortgage differ in terms of fixed and flexible borrowing. Our team can advise you on which is best to finance your real estate investment.

A HELOC and a mortgage are best used in combination, as this allows you to access your home equity while you’re paying off your mortgage.

How Do I Get a Home Equity Line of Credit?

If you feel ready to apply for a home equity line of credit, you’ll need to provide:

  • Proof of full-time employment
  • Proof of standard income
  • Adequate credit report
  • Minimum 20% home equity

The Mortgage Ability can help you organize your paperwork to be able to begin the application process.

How Does a Home Equity Line of Credit Work?

If you plan to use home equity as credit, you must provide proof that you are a homeowner. Lenders will usually require:

  • Deed of ownership
  • Mortgage balance statement
  • Mortgage term
  • A home valuation assessment

Unlock the Best Line of Credit Rates in Plano

When it comes to finding the best line of credit rates on home equity, The Mortgage Ability is your best bet. Our highly qualified team has the in-depth knowledge and skill to guide you in the right direction.

Call our experts now at (214) 293-9383 to get started.

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