{"id":6054,"date":"2015-09-11T20:00:48","date_gmt":"2015-09-11T20:00:48","guid":{"rendered":"\/?page_id=6054"},"modified":"2015-09-24T15:42:53","modified_gmt":"2015-09-24T15:42:53","slug":"home-equity-line-of-credit-heloc","status":"publish","type":"page","link":"https:\/\/strawberryinsurance.com\/mortgage\/home-equity-loans\/home-equity-line-of-credit-heloc\/","title":{"rendered":"Home Equity Line of Credit (HELOC)"},"content":{"rendered":"<h2>What is a Home Equity Line of Credit?<\/h2>\n<p>A Home Equity Line of Credit, or HELOC, uses your home equity as collateral. A HELOC offers a line of credit from which you can draw as needed, as opposed to a typical home equity loan which gives you the entire amount of the loan up front. You can pull money from your line of credit during a specified &#8220;draw period&#8221; (usually between 5 and 25 years), paying back only the money you use plus interest.<\/p>\n<p><a href=\"http:\/\/www.ratemarketplace.com\/a\/-\/4rates\/?T=google\">[blockquote size=&#8221;full&#8221; align=&#8221;center&#8221; byline=&#8221;&#8221; rating=&#8221;&#8221;]Get up to 5 FREE Quotes Now![\/blockquote]<\/a><\/p>\n<p>When this draw period ends, you repay the loan&#8217;s principal either in one lump sum or according to a payment schedule. Since your home provides collateral for the loan, failure to honor a repayment agreement could result in foreclosure. Since the interest rate on a HELOC is tied to economic indexes such as the prime rate, it is variable and will change over the life of your loan.<\/p>\n<h2>Why Choose a HELOC?<\/h2>\n<p>A home equity line of credit is a popular choice for borrowers because they:<\/p>\n<ul>\n<li>Offer large amounts of cash at relatively low interest rates<\/li>\n<li>May allow you to deduct the interest paid from your taxes, depending on your specific financial situation<\/li>\n<li>Can be a flexible way to borrow on demand and repay on your own schedule<\/li>\n<\/ul>\n<h2>How to Get a HELOC<\/h2>\n<p>Getting a HELOC is similar to getting a first mortgage, but less rigorous and time-consuming. However, you shouldn&#8217;t rush the research before signing on the dotted line. Consult with a variety of lenders to make sure you&#8217;re getting the lowest rates you can, being sure to compare the annual percentage rate (APR), which tells you the cost of credit on a yearly basis. While shopping around, make sure you also compare other associated loan expenses such as points and closing costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Home Equity Line of Credit? A Home Equity Line of Credit, or HELOC, uses your home equity as collateral. A HELOC offers a line of credit from which you can draw as needed, as opposed to a typical home equity loan which gives you the entire amount of the loan up front. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":5817,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/pages\/6054"}],"collection":[{"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/comments?post=6054"}],"version-history":[{"count":0,"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/pages\/6054\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/pages\/5817"}],"wp:attachment":[{"href":"https:\/\/strawberryinsurance.com\/wp-json\/wp\/v2\/media?parent=6054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}