Home Equity Loan of Credit (HELOC)

Put a little money aside for a rainy day.

Definition:
Home Equity Line of Credit is a secure form of revolving line of credit that uses your home as collateral.  You only pay interest on the money borrowed. 

Depending on many your credit history and income, you could possibly borrow up to 100% of the value of your home. The credit line is similar to a credit card as you pay interest only on the amount of money outstanding. Payments are usually interest only and the term of the credit line is typically 10 years.

Advantages:
The main advantage of a Home Equity Line of Credit is that you pay interest only on the amount of money borrowed, and the payment is often interest only.  Other advantages include:

• Tax deductible interest* (consult your tax advisor)
• No additional collateral other than your home is required
• No pre-payment penalties
• Favorable interest rates
• Streamlined documentation
• The monies can be used for any purpose.