Velocity Finance - Home Equity Line Of Credit

Home Equity Line Of Credit - Letting The Good Times Roll

A home equity line of credit is like a credit card with a super-gigantic limit. You apply for the loan, and you can access you money at any time during an initial term - usually 5 to 10 years. During that initial term you are only responsible for thee interest payments - paying off the principal doesn't begin until the withdrawal term is over. So party on ladies and gentlemen, and see what you can do with these huge, flexible amount of home equity!

We like the home equity line of credit, we really do

Unlike the traditional home equity loan there is no set dollar amount to your home equity line of credit, just a maximum limit over a set number of years:

If you have a construction project in mind but aren't sure of all the expenses or time it will take, apply for that home equity line of credit and get started on building the house of your dreams.
If you experience occasional difficulties in your everyday finances and could use a little bit of continuous, low interest help, then these HELOC's might be just right for you.

The interest on a home equity line of credit does not begin accruing until you first access the money, and you are not obliged to take out more than a minimal amount of the overall approved limit. But - and this is a big but for today's high-paced, finance dominated lifestyle - there is no limit other than that approved limit to your spending potential.

Too much flexibility?

Home equity line of credit rates will be significantly lower than the rates on home equity loan of comparable size - HELOC's all carry adjustable rates, and there is no guarantee you will actually need the entire amount. But its these more flexible home loans that find a way of getting their users into trouble - either we take out too much money over time and spend it on unnecessary things or we access more money early on and don't have enough to complete the project. When taking out home equity lines of credit you have to be sure you can handle yourself - keep your eyes on the initial intent of your credit line, and don't take out more than you can actually afford to repay.

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