Home Equity Line of Credit (HELOC) - Home Equity Line of Credit (HELOC) is a line of credit against which a homeowner can borrow as often as his financial situation calls for. He can borrow and pay off the debt any time he chooses. When there is an outstanding balance, the required payment is the interest accrued every month. When there is no balance, he incurs no finance charges.

A HELOC is similar to those credit card cash advance checks in that the credit lines do not have to be used. They are used only when the credit card holder, or homeowner, sees the need to borrow funds. And only then does the homeowner incur interest charges. HELOC is different from a credit card cash advance in that HELOC is a mortgage, and it is secured by the homeowner's house as collateral.

There is a "draw period" and a "repayment period", usually 10 years and 20 years, respectively. During the 10-year "draw period", the homeowner can borrow, or draw, against the line of credit as often as he likes, up to the credit limit, and he can pay off all or none of the principal owed any time he sees fit. However, although he does not have to pay off any of the principal, interest earned by the bank has to be paid of monthly. During the 20-year "repayment period", any balance owed is amortized to be paid off over the next 20 years. In reality, many homeowners simply take out a new HELOC to replace the current one, and have another "draw period" for the next 10 years.

Interest rates on HELOC's are based on Prime. Depending on the borrower's credit scores and the Loan-to-Value ratio, a ratio banks use to assess default risk, most HELOC interest rates range from Prime + 0% to Prime + 1%. Prime is an index published on the Wall Street Journal and other financial newspapers.

We are currently offering a No Closing Costs Home Equity Line of Credit to homeowners with credit scores of 680 or higher. With this special HELOC, homeowners do not spend a penny on obtaining a credit line of up to $200,000. The homeowner does not pay for property appraisal, title search, title insurance, mortgage tax, county recording, attorney, etc. In other words, there is absolutely positively No Cost to obtain this line of credit.

As an additional benefit, this No Closing Cost HELOC is available as a Stated Income loan. That is, no income verification is required. This added convenience saves weeks of underwriting time. However, a homeowner may be able to obtain a higher credit amount or higher Loan-to-Value if he furnishes income supporting documents.

Our No Closing Costs HELOC is available ONLY for the following residential properties, single family residence, duplex, condominium, and cooperative. No multi-family buildings, commercial properties and "mixed-uses" allowed. Three-family and four-family houses are considered on a case-by-case exception, with lower loan to value percentage.

In addition to interest expenses when a balance is carried over from month to month, there is a $50 annual account maintenance fee.

If you see the need for this special offer, please contact us.

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