Home loan credit

Lets you borrow what you need, when you need it. You use cash from your home's equity at your convenience, and only pay for what you spend. Uses a variable rate, where the interest and annual percentage rate move up and down on par with the prime rate published in the Wall Street Journal. You can be comfortable knowing you are borrowing at the best rate available at the time. Your house. It’s the place you call home and the place you look forward to returning to after a long day’s work. But did you know that your home can also work for you? When you put the equity in your home to use with a Chase home equity line of credit, you begin to truly see the value your home has to offer. A Chase home equity line of credit is a smart way to access funds for whatever you need.

With every mortgage payment, you’ve invested more valuable equity in your home. Depending on the amount of that equity, you could borrow cash to pay for home renovations or college tuition, or to consolidate high-interest credit card debt. How much can you borrow Use our handy home equity line of credit calculator. There are two basic types of home equity loans: the second mortgage and the home equity line of credit loan. A second mortgage is paid in a single lump sum, while a typically works more like a credit card account, allowing you to withdraw funds as needed. You repay a second mortgage at a fixed monthly amount; payments on a are determined by how much you have borrowed against your credit line, and the current interest rate.

Since rates are generally adjustable, a home equity line of credit calculator can help you estimate the amount of your monthly payments and budget for the change in your expenses. Often, the interest rate on this type of loan is substantially lower than that of a credit card account. If you use the to consolidate debt and pay off your credit cards, your overall monthly payments could decrease. Improved cash flow means more savings for you. Using a home equity line of credit calculator can also help you decide which type of loan to choose. You may find that your needs are better served with the predictability of a second mortgage. Since the interest rate is fixed, your payments will never increase.

On the other hand, if you are paying for expenses over a lengthy period of time for instance, four years of college tuition and do not need to get all the cash at once, a could be the smart choice. After all, you only make payments based on the amount you’ve borrowed – not the total amount you are qualified to borrow. Here’s an example of how the home equity line of credit calculator works: Say you’d like to borrow against your equity to consolidate some debt and contribute toward your daughter’s wedding expenses next year. The amount you can borrow depends on the appraised value of your home and the balance due on your mortgage. If your home is appraised at $400,000 and you owe $235,000, you could qualify for an $85,000 credit line.
These articles will help you determine whether a Home Equity Loan makes sense with your current financial situation. Most of our homeowners save about $300 or more every month by consolidating their debt into a Home Equity Line of Credit. Find out how a home equity loan can help you save money. Contact us today and find out how to use the equity in your home to pay for home improvements, buy a new car, and take a well-deserved vacation or absolutely anything else you desire! If you are in the market for credit, a home equity plan may be right for you by using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please - and at a lower interest rate. Depending on your specific situation, you may also be allowed to deduct the interest because the debt is secured by your home.


A home equity line of credit is a form of revolving credit in which your home serves as the collateral. Because your home is most likely your largest asset, you may want to consider using your credit line for larger expenses such as education, home improvements, or medical bills and not incidental daily expenses. With a home equity line of credit, you are approved for a specific amount of credit. This is your credit limit or the maximum amount you may borrow at any one time under the plan. To establish a preliminary credit limit, many lenders take a percentage of the home’s appraised value and subtract the balance owed on the existing mortgage.
In determining your actual credit limit, the lender will also consider your ability to repay by looking at your income, debts and other financial obligations, as well as credit history. With a home equity line of credit program, many lenders will offer a variety of lending plans designed to meet varying member needs. Many home equity line of credit plans set a fixed period during which you can borrow money. This is known as the “draw period.” During this period, you may obtain draws up to your established credit limit. Some plans may require that you borrow a minimum amount each time you draw on the line of credit and that you keep a minimum amount outstanding. in Texas, any draw must be at least $4,000.

Some plans may also require that you take an initial advance when the line of credit is set up. Typically, you will use special checks to draw on your line of credit. You will also be required to make payments during the draw period, but usually much smaller payments are required than during the repayment period. At the end of the draw period, you will begin the “repayment period.” During the repayment period, you may no longer make draws and your payments will be set in an amount sufficient to pay off the loan at the maturity date or sooner. The terms of the draw and repayment periods will vary according to the different line of credit plans.