What is a Home Equity Line of Credit?
A home equity line of credit is a form of revolving credit in which your home is used as collateral. Home equity lines of credit feature a variable interest rate and a draw period. This is particularly useful where you receive lump sum payments/ bonuses or are paid monthly and want to use the power of your money to reduce your interest payments.
If you are a mortgage loan customer of National Exchange Bank & Trust, you can use the equity in your home to make purchases for almost any reason. Depending on your current credit score, you can get a great interest rate on this loan. A line of credit is set up and a checkbook is issued to easily withdraw money from the line by writing a check. To pay back the line of credit, you simply make a payment at the bank or transfer money on Exchange OnLine.
Related Questions
- Can consolidating debt through a new, refinanced mortgage, cash-out refinance, home equity loan or home equity line of credit (HELOC) help me cut my monthly expenses?
- What are the chances of interest rates being reduced to allow a refinance on an existing VA mortgage?
- What is a Home Equity Line of Credit?
