Home Equity Line of Credit

What is a Home Equity Line of Credit and what is involved?

Plain and simple, a Home Equity Line of Credit (HELOC) is a loan that allows you to borrow money using the equity in your home. Unlike a Home Equity Loan where you get a large lump sum, a Home Equity Line of Credit allows you get approved for a specific borrowing limit and you can us as much as you want of that line of credit agree upon. What is also great about a Home Equity Line of Credit, is that the credit is revolving which means you can pay back the line of credit after you've used it and keep using it.

What is required to obtain a Home Equity Line of Credit?

  • You must have a substantial amount of equity in your home (talk to an expert loan officer to determine what percentage that is for you)
  • Proof of a stable job and solid income
  • A good credit score (generally about 620)

What do people use Home Equity Lines of Credit for and is it right for you?

There are actually many reasons as to why people take out HELOC's. Some of the common reasons First Savings Mortgage and our Loan Officers often see are for college tuition payments or needing to make improvements homes but are uncertain of how much is needed.

What factors should you consider and discuss with an expert Loan Officer?

At first, you may first need to discuss your financial needs within the household or with a financial expert. No one knows about your relationship with money other than yourself, spouse or financial advisor. Be sure this type of loan is something that will suit your needs. Be sure you understand what you need the funds for, what you can afford so you can pay the loan back and what the plan is to pay the loan back.

Our expert Loan Officers will happily be able to get you started on the journey to get you pre-qualified and determine the terms and interest rate of the home equity line of credit. If you'd like to sit down with a Loan Officer first to learn more about HELOC's, contact us today.

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