Equity Line of Credit

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future.

If you’re thinking about making some home improvements or looking at ways to pay for your child’s college education, you may be thinking about tapping into your home’s equity – the difference between what your home could sell for and what you owe on the mortgage –  as a way to cover the costs.

With a home equity loan, the lender advances you the total loan amount upfront, while a home equity credit line provides a source of funds that you can draw on as needed.


Under the Federal Truth in Lending Act, lenders must tell you about the terms & costs of the loan plan when you get an application, disclose the APR & payment terms, and must tell you the charges to open or use the account, like an appraisal, a credit report, or attorneys’ fees.

Lenders also must tell you about any variable-rate feature and give you a brochure describing the general features of home equity plans.

What’s the loan process?
To qualify, you must have equity in your home. After you contact a lender:
1) The lender will send an appraiser to determine your home’s value.
2) The lender will determine the maximum loan amount based on the equity in your home.
3) You will sign a contract & a Deed of Trust will be recorded against your home.  This means that if you don’t make the payments, your home can be sold.


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