| HELOC
:: Home Equity Line of CreditHELOC Loans an
abreviated term that means Home Equity Line of Credit Loan. Mostly know for Home
Equity Line or Loans. This type of loan is set up as a Line of Credit set up for
a maximum amount that you can borrow up too. Like a credit card that has a maxium
credit line, and Home Equity Loan is much like it where you can borrow up to whatever
amount your California Equity Line is approved for. The
main difference between a Home Mortgage and a Equity Line of Credit is a home
mortgage you borrow a set specific amount of money (ie. $250,000) and you close
on the entire amount of money. Your monthly payments would reflect the entire
amount. Mortgages also can have hidden costs behind paying the full amount in
advance, often called a prepayment
penalty. An Home equity Line of credit you can borrow up
to or below the maxium amount you qualify for and pay it off anytime within the
alloted time of the Equity Loan without any penalties. HELOC are very convenient
ways to fund small to medium project such as remodeling, paying of credit card
debts, loans with higher interest rates, college tuitions. You only pay the interest
on the amount you use. The HELOC Loans usually changes interest
rates from day to day because your draw and payments can change day to day rather
than calculated per month. This is an added benefit to you as most of the time
this will save you money at the end. Monthly interest rate are usually higher
than loans calculated on a daily basis. HELOC Equity Loans
has a draw period which the borrower can use the Line of Credit and a repayment
period which it must be repaid. Draw Periods are usually 5 to 10 years during
which time the borrower only has to pay the interests on the amount being used.
At the end of the draw period the HELOC Loan the entire balance plus any outstanding
interest must be paid in full or the borrower can refinance at this point. Madison
Hunter, Inc. is a licensed Real Estate Broker with the California Department of
Real Estate License# 01444750 * Information is subject
to change at anytime and you should always read your contract and understand the
loan agreement before signing anything. | 
