A HELOC is very different from a Mortgage.

The first major difference is that you are not required to make principle payments on the loan.

You are only required to make interest payments. This generates a lower monthly obligation, but the balance does not decrease if you only make the minimum required payment.

The second major difference is that a HELOC is ‘re-advanceable’. If you pay your HELOC down below the limit, you can access that money again in the future if you need it.

A family’s Home is usually their most valuable asset. Having access to the Equity in the Home can often be very helpful when a homeowner needs to access a significant amount of money for a significant expense.

A pure HELOC can only go up to 65% of the value of your Home, but a HELOC mortgage combo can go as high as 80% of the value of your Home.

People will often use HELOCS to cover education costs, medical bills or home improvements. HELOCS are also often used for investments.

If you have questions about obtaining a HELOC, a Worry Free Mortgage Agent would be happy to discuss a HELOC in more detail with you.