Equity lines of credit are usually recorded as second
mortgages. With most equity lines, you can use the money when you
want, up to your credit limit, and you only pay interest on the amount
you have drawn out. This works particularly well for those who are remodeling,
building a pool, landscaping, etc. As long as you don’t try to borrow
too much of your existing equity,
you should be able do the loan for up to $50,000 with very little or no
cost to you. By this we mean there should be little or no cost either
paid out of pocket or added onto the loan amount.
Sometimes people establish equity lines of credit just in case they
need or want them in the future. Equity lines are usually adjustable
rate loans. It is very important that you learn the exact terms
of any adjustable rate loan, also known as a variable rate loan. You should
know the start rate, index,
margin,
adjustment
cap, and lifetime
cap. There should be no pre-payment
penalty on an equity line.
As a service for our clients, for those who qualify, we can arrange
equity lines up to $50,000, many times at no cost. At the most, the charge
is $500.
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