What is a HELOC Loan?
What is a HELOC Loan and what benefits does it provide?
A HELOC is a home equity line of credit or often referred to as a second mortgage. This loan allows you to borrow money for large expenses or to consolidate debt by leveraging the available equity in your home. Home equity is calculated based on the difference between the appraised value of your home and your current balance on your mortgage. An example of this is if your home appraised at $400,000 and you still owe $100,000 on your mortgage, then your available equity is $300,000.
A home equity line of credit can be a good option if you need to cover larger expenses associated with renovations, college tuition, debt consolidation, or other types of major expenses. Since you can borrow against the value of your home, a home equity line of credit is often times easier to qualify for than other loans. This is due to the fact that the loan is secured by your house.
Home equity line of credit typically carries with them fixed interest rates that can offer rates that are lower than credit cards or other unsecured customer loans. In an ever-changing rate environment, customers are smart to secure a fixed rate loan. This can provide a simplicity to a household’s budget because your monthly payment will remain around the same over the duration of the loan and should never increase.
One of the main benefits of this type of loan is that it is most often paid out in one lump sum. This brings with it the flexibility many customers need when covering large expenses. Then customers pay back the loan amount with regular monthly payments that will go towards both accrued interest and principal for the agreed-upon number of years. It’s important to note that if you sell your house, then your home equity line of credit would need to be paid back in full at that time.
Another benefit available to consumers is a potential tax deduction. If a home equity line of credit is being used for home renovations then consumers may qualify for a tax deduction. Always consult a tax professional for more information on specific deduction amounts.
How do you know if a home equity line of credit is right for you?
Well, if you are a responsible borrower with a steady, reliable income, then a home equity line of credit can be a great option! The flexibility it offers in what costs it can cover is unmatched. In addition, there may also be rate and fee benefits. If you are interested in learning more about a home equity line of credit with JCAP we would be glad to answer any questions you may have. We are here to serve you!
How does JCAP’s HELOC Program differ from a normal HELOC Program?
Unlike traditional HELOC programs, JCAP has the ability to give all of the money upfront. Banks do not have the capability of doing so and in return, this is a major downside for clients that want to get their money quick. JCAP also differs because included in our specific HELOC program; there is 12-month interest discount rate involved. Our goal here at JCAP Private Lending when having a HELOC loan is to refinance out & turn the loan into a conventional loan with a better rate. This means everyone included in the process wins.
How Can JCAP Private Lending Help?
JCAP specializes in probate loans & also has the ability to customize Loans to YOUR needs. In the time of inheriting Real Estate, feeling overwhelmed and unsure of what decision to make, We can help support you with a Loan, to buy some time, save you from foreclosure & possibly eliminate payments throughout the process. We are a Direct Lender who closes and services Investor Funded Short-Term Real Estate Loans. Our experienced team has been providing quality mortgage services for over 30 years. JCAP Private Lending is an Asset Based Lender who steps in to quickly solve a short-term financial need secured by Real Estate. JCAP has an innovative approach to lending, focusing on speed, simplicity, and safety for borrowers and investors. Located in Costa Mesa, CA, JCAP Private Lending primarily lends Hard Money & Private Loans secured by 1st & 2nd TD’s on residential property. For further information, please visit www.jcap.net