A home equity line of credit, or HELOC, can be a quick and convenient way to access funds for your next home improvement project or major life expense.
Like a credit card, a HELOC is a form of revolving credit that turns your home into cash.
It gives you the flexibility to access funds and use them when needed over a period of time, usually 5 to 10 years, known as the draw period.
Once the draw period is up, monthly payments are made to repay the loan during a repayment period, which is typically 20 years.
The interest rate on a HELOC is variable and fluctuates based on your balance and the prime rate.
Most lenders let you borrow up to 80 percent of your home’s value; at Ascentra, you may borrow up to 100 percent.
Unlike other loans, the interest on a HELOC of $100,000 or less is likely to be tax-deductible, and generally has a lower interest rate.
While credit buys you more flexibility, it’s important to spend within your means.
Head to ascentra.org/mortgage and see if a HELOC can help you with the kitchen remodel you’ve always wanted. Remember, it’s on the house!