Home equity line of credit (HELOC) prime lenders are still plentiful even during time of real estate uncertainty. I recently had an emergency come up, and thank goodness I have the equity on my home and a decent credit score. A HELOC loan from home equity prime lender allowed me to get past my emergency with a minimal amount of fuss. Instead of a second mortgage, it really worked out to get this loan from a HELOC prime lender.
HELOC prime rate ties
A home equity line of credit is closely tied to the prime lending rate in terms of the repayment structure. Since the repayment period of the HELOC is a variable rate, the amount I pay during the repayment period rises and falls with the prime lending rate. As long as the prime rate remains low then I’m ok. My lender also tells me that when the draw period (usually ten years) ends I can look at refinancing into a fixed rate loan as I enter repayment. This was good news and made me feel much more comfortable.
HELOC prime lending terms
Of course the key to a home equity loan is equity. Good credit is important but the equity has to be in the home to be considered eligible for this type of loan. Once approved, there is a draw period during which you may borrow against your HELOC as needed and you only pay the interest on the funds you have actually withdrawn. After the draw period ends it is time to start the repayment period, usually with a variable rate repayment structure.
Using a HELOC for my emergency worked out perfect. The flexibility of a HELOC means that it is an ideal choice for a lot of things including paying off high interest credit cards and for financing home improvement projects. If this sounds like the kind of loan you may need, contact any HELOC prime lender and find out how to get things moving.