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Unleash the equity in your house with a HELOC

Unleash the equity in your house with a HELOC

Posted On: November 23, 2021 by Falcon National Bank in: Your Financial Life | Personal Banking

Do you have home-improvement projects you are wanting to tackle but don’t have the excess cash readily available to do so? A Home Equity Line of Credit (HELOC) may be the perfect solution for you. A HELOC is a revolving loan that is secured by your house. It allows you to leverage the equity that you have in your house to gain access to funds to use for home-improvement projects, such as home renovations, debt consolidation, emergency expenses etc... HELOCs are a variable rate loan. You only pay interest on the funds you advance from the loan. As the outstanding balance is paid down, those funds become available for you to use again, like a credit card. HELOCs typically mature after 10 years at which time, the borrower is expected to pay the remaining balance, however there are options to obtain an extension or different financing options. The bank will assess these options with the borrower. Because HELOCs are an extension of your mortgage, it is imperative to make timely payments.

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