HELOCs are loans that are fully indexed at the Prime Lending Rate plus an additional number of interest points depending on what the borrowers credit score is.

HELOCS are available in fixed or variable rates. The nice thing about a HELOC is that cash is always accessible, unlike a second mortgage that gives you the cash in a one time lump sum payment. HELOCS can be drawn upon whenever the need arises. Although some HELOCS may require a certain amount be drawn out initially.

A home equity line of credit, also known as a HELOC and pronounced he-lock, is a great way to access the equity in your home. A HELOC works similar to a credit card and a checking account. You obtain a HELOC for a certain amount of money which is your maximum credit limit, you only pay on what you borrow, when you pay the amount you have borrowed back the money is available to you again, and you can usually write checks against the HELOC or use a debit card against the available credit to the HELOC.

HELOC loans have become very popular in part because interest paid is typically deductible under federal and many state income tax laws.

HELOCs usually come with below market teaser rates which increase after 3-6 months. HELOCs are great for borrowers with low LTVs. Rates for these loans are usually at PRIME but once borrowers go over 80% CLTV the rate starts to inch higher closer to regular mortgage rates.

Some HELOCs may have 360/180 balloon terms. This means the loan is amortized according to a 30 year schedule, but the full balance is due after 15 years. Give me a call at for more details.

HELOC rates at or below the prime lending rate are available to homeowners with good credit and a lot of equity in their home. A HELOC, or Home Equity Line of Credit, is a great loan for homeowners wishing to have access to funds whenever the need arises. Among the ways HELOC funds can be utilized are: paying off credit card debt, paying for home improvements, and paying for college tuition.