Home Equity Line of Credit

Jon Shibley, President & CEO, Lenox Financial

A Home Equity Line of Credit (HELOC) is a line of credit that allows you to cash the equity of your home up to a 100%, and because of its revolving line of credit features that allow you to pay down the balance and the use it again thru out the draw period which traditionally lasts up to 10 years and because its optional interest only payments, it’s one most convenient debt consolidation products out there. HELOC’s are also used in home purchases when you are putting less then 20% down payment to avoid paying mortgage insurance. Unlike a second mortgage, this product has a variable rate that is tied to prime rate.