Home buyers who can't afford a 20-percent down payment usually have to pay private mortgage insurance, or PMI. This protects the lender in case the buyer defaults on the mortgage. To avoid PMI, a growing number of buyers are choosing an alternative: Home Equity Line of Credit, or HELOC, which is a second mortgage that closes simultaneously with the first. Often, the first loan is for 80 percent of the value of the home, and the second is for 10-15 percent.?

HELOC rate is tied to the Wall Street Journal prime rate and often one to two percentage points higher than the first because fewer lenders are willing to carry the loans, and in the event of default, second mortgages gets paid back second, making them riskier to lenders.

Faster Cash for Any Purpose, Better Than a Bank
HELOC is set up as a line of credit for some maximum draw, rather than for a fixed dollar amount. It is similar to a credit card account but with a much lower rate. You can use the money for other purposes conveniently by writing a check, such as paying off credit cards, making home improvements, buying cars, or paying college tuition. And you only pay interest when you actually draw the money and the interest may be tax deductible. Some real estate investors keep a HELOC account and write the check as soon as they see a good deal on a foreclosure. Some other individuals who are conservative in investing choose to put all their extra money into their mortgage principal and keep a HELOC for emergency purpose.

HELOC has a draw period, during which the borrower can use the line, and a repayment period during which it must be repaid. Draw periods are usually 5 to 10 years, during which the borrower is only required to pay interest. Repayment periods are usually 10 to 20 years, during which the borrower must make payments to principal equal to the balance at the end of the draw period divided by the number of months in the repayment period.?

The Cost and Interest Rate of My HELOC
There is little or no closing cost for obtaining a HELOC. The amount of the HELOC you can get and its rate are determined by the current appraisal value of your house, current loan balance, your income, and credit history. Click following link to see the most recent rate sheet and examples.
HELOC rate sheet and examples.

Contact us now to open a HELOC account with nation's most prestigious banks. We can help you to get the money in as few as 10 business days. There is no lender junk fees. You can call us or simply fill out the online rate inquiry form. We will contact you immediately.