Call me to discuss which option makes the most sense for you. Greg Rank (317) 603-0912
I partner with several Lenders that offer Home Equity Loans. The types and terms vary between Lenders and I will help you find the best options to meet your needs. Some examples of different Equity Loans include Standalone & Piggyback HELOCs, and Fixed Rate 2nd Mortgages. The information below is general information about HELOCs.
What is a HELOC?
Home Equity Line Of Credit
A line of credit secured by a property that a borrower can draw from, up to the amount they are approved for
What is a Standalone HELOC?
Tied to a property that has an active mortgage attached to it
The HELOC and the active mortgage do not need to be from the same lender
What is a Piggyback HELOC?
Also referred to as a 2nd, Simultaneous Close HELOC
The HELOC is done at the same time as the first mortgage on the subject property
Typically done with a purchase transaction
GENERAL TERMS
Note Rate – The interest rate the loan closes on
Draw – Dollar amount the borrower pulls from against the available line of credit
Initial Draw Amount – The dollar amount the borrower pulls from the credit line at closing
Draw Period – Timeframe in which the borrower is able to withdraw funds from the available line of credit. (for example, 3 or 10 years)
Repayment Period – The timeframe in which the borrower repays the balance owed. Once the repayment period begins draws are no longer permitted. The outstanding balance becomes the loan amount.
Max Loan Amount – The maximum dollar amount that can be borrowed with a HELOC
Total Line Amount/Max Loan Amount – The highest balance that can be drawn on the HELOC
