California Equity Line Of Credit

A home equity line of credit (HELOC) is an easy way to borrow against the value of your home. With low rates and excellent tax benefits home owners are opting to use an equity line instead of acquiring credit card debt. Most home equity lines are more easily secured then a standard mortgage and have a specified time frame from which a borrower may access money from the account before having to pay it back. Usually 5, 10, or 15 years is the average cash withdraw time the loan re-amortizes. Most equity line monthly payments are interest only, this serves to purposes. One, by paying the interest every month you will not acquire a larger loan amount then what's borrowed and second your monthly payments during the draw period are significantly lower then paying a fully amortized principle and interest loan.

With a qualifying credit grade it's possible to receive an equity line up to 100% of the value of your home. Like most of our other loan program you may qualify without proving income (otherwise known as stated) or with less then average credit scores. Most HELOC's are variable loans based on the prime rate, (6.75% as of October 2005), this rate is adjusted and set by the Federal Reserve. Most loans have additions or deductions to the rate based on credit grade, loan to value, and documentation. For example, if you have an excellent credit grade you may qualify for the loan at the prime rate of 6.75%. If you have to qualify by "stating" your income there lender may a margin added to the prime rate making your total rate 7.75%. In this scenario we added a 1% margin to the prime rate this is just a estimating add-on based on average programs. All home equity line rate adjustments vary from lender to lender. Please complete a quick quote form to find out if you qualify.

A home equity line of credit is also useful when purchasing a home. It can be used as secondary financing for borrowers with little capital for a down payment on the home. The equity line may be a better option when using 80/20 financing then a fixed 2nd mortgage. The rate is usually lower the payment is interest only, and in mot cases has no prepayment penalty. Together with a first mortgage you may qualify for extremely low 100% financing on your new home purchase. Take a few minutes to complete our Quick Quote form for further information