{"id":7120,"date":"2019-06-03T21:13:03","date_gmt":"2019-06-04T04:13:03","guid":{"rendered":"https:\/\/financer.com\/?p=7120"},"modified":"2024-09-17T05:46:22","modified_gmt":"2024-09-17T12:46:22","slug":"home-equity-line-of-credit","status":"publish","type":"page","link":"https:\/\/financer.com\/loans\/home-equity-line-of-credit\/","title":{"rendered":"Home Equity Line of Credit"},"content":{"rendered":"\n
It’s a lazy Sunday afternoon. You’re sipping coffee, scrolling through home renovation ideas on your phone. Suddenly, it hits you – that dream kitchen remodel doesn’t have to remain a dream<\/strong>. But your savings account is looking slim, and your credit card limit won’t cover even half the cost.<\/p>\n\n\n\n You type into Google: “Home Equity Line of Credit<\/strong>” and if you’re lucky, you land here.<\/p>\n\n\n\n Why lucky?<\/p>\n\n\n\n Because our team is committed to cutting through the financial jargon and providing you with honest, straightforward advice on HELOCs.<\/p>\n\n\n\n And here’s a further disclosure: in the vast sea of HELOC offers, we’ve done the heavy lifting to bring you only the most reputable lenders and the best rates available in November 2024.<\/strong><\/p>\n\n\n\n Whether you’re planning a home renovation, consolidating high-interest debt, or need funds for an unexpected expense; a home equity line of credit can be a game changer.<\/p>\n\n\n Best Overall: Bank of America<\/strong> Best for Low Fees: U.S. Bank<\/strong> Best for Long Draw Period: Connexus Credit Union<\/strong> Best for High Loan Amounts: PenFed Credit Union<\/strong> Best for Fast Approval: Figure<\/strong> A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home’s equity. Unlike a traditional home equity loan that provides a lump sum, a HELOC allows you to borrow as needed up to a predetermined credit limit, similar to a credit card.<\/p>\n\n\n A HELOC typically consists of two phases:<\/p>\n\n\n\n Most lenders allow you to borrow up to 85% of your home’s value, minus your outstanding mortgage balance. This is known as the combined loan-to-value (CLTV) ratio.<\/p>\n\n\n Home Value: $400,000<\/p>\n Outstanding Mortgage: $250,000<\/p>\n 85% of Home Value: $340,000<\/p>\n Potential HELOC Amount: $340,000 – $250,000 = $90,000<\/p><\/div>\n\n\n\t\tOur Picks for Best Home Equity Lines of Credit in November 2024<\/h3>
Offers competitive rates, no application or closing fees, and rate discounts for existing customers.<\/p>\n\n
No closing costs and flexible repayment terms make this an affordable option for many homeowners.<\/p>\n\n
Features a generous 15-year draw period and low introductory rates.<\/p>\n\n
Offers HELOCs up to $1 million with competitive rates and discounted closing costs.<\/p>\n\n
Provides a streamlined online application process with potential approval in minutes.<\/p><\/div>\n\n\nWhat is a Home Equity Line of Credit (HELOC)?<\/h2>\n\n\n\n
Key Features of HELOCs:<\/h3>
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How HELOCs Work<\/h2>\n\n\n\n
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Example HELOC Calculation:<\/h3>