Those homeowners looking to access their equity for various reasons may benefit from secondary financing options like a home equity line of credit, (HELOC) or a Fixed Rate 2nd Mortgage.
A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for home improvements, Expenses, Investments or to consolidate higher-interest rate debt.
With a HELOC you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card. This means you can borrow against it again if you need to, and you can borrow as little or as much as you need throughout your draw period (typically 10 years) up to the credit limit you establish at closing. At the end of the draw period, the repayment period (typically 20 years) begins.
A Fixed-Rate Second loan prove ideal for owners who are looking for home updates, repairs, and additions with a fixed rate and term. All the proceeds are received at funding and there is no line of credit like there is with the HELOC. However, you receive a fixed rate and a fixed term.
Unfortunately, not all lenders offer fair rates or flexible repayment options. That is why Rocklin Mortgage Brokers is the trusted choice throughout California.
Choose Rocklin Mortgage Brokers today.
