Hi Friend,

As we soak up the final days of Summer, we are thrilled to bring you our brand-new August Newsletter. This month, we are diving into a topic that is both intriguing and beneficial for homeowners – the fascinating world of HELOC.

Are you a homeowner looking for ways to access the equity in your home without having to sell it? A HELOC home equity line of credit might be the solution you need. A HELOC is a flexible financial tool that allows homeowners to borrow against the equity they have built up in their home over time. With a HELOC, you can use the equity in your home to pay for home improvements, college tuition, or even consolidate debt. Let's take a closer look at what a HELOC is and how you can use it to your advantage.
 
What is a HELOC?
 
A HELOC is a revolving line of credit that lets you borrow against the equity in your home. The amount you can borrow is based on how much equity you have built up in your home. When you take out a HELOC, you are borrowing money against your home’s value. You can then use this money to pay for things like home renovations or college tuition. HELOCs are usually tied to a variable rate of interest, which means the rate can fluctuate over time.
 
How does a HELOC work?
 
A HELOC works like a credit card with a credit limit. You can borrow as much or as little of the available funds as you need, up to the credit limit. As you pay back the borrowed amount, you can borrow again up to the credit limit. The repayment terms for a HELOC depend on the lender, but usually, HELOCs have an interest-only period, during which you only have to pay the interest on the money you borrow. After the interest-only period ends, you will have to repay the principal amount plus interest.
 
HELOC vs. Home Equity Loan:
 
A home equity loan is a lump sum of money that you borrow against the equity in your home. Home equity loans usually have a fixed interest rate and a set repayment term. In contrast, a HELOC is a revolving line of credit that gives you access to a set amount of money over time. HELOCs have a variable interest rate that can fluctuate over time. Which option is best for you depends on your own circumstances, goals, and financial situation.
 
Requirements for a HELOC:
 
To qualify for a HELOC, you typically need to have some equity in your home. Most lenders will require you to have at least 15-20% equity in your home before they will consider giving you a HELOC. Additionally, you will need to demonstrate steady income and good credit to qualify. The amount you can borrow depends on your credit score, the appraised value of your home, and your debt-to-income ratio.
 
Advantages of a HELOC:
 
One of the main advantages of a HELOC is flexibility. You can use the money for any purpose you choose, and you only have to pay interest on the money you borrow. Additionally, because the interest rate on a HELOC is usually lower than a credit card or personal loan, it can be a cost-effective way to borrow money. Finally, a HELOC can be a useful tool for homeowners who want to pay off high-interest credit card debt or consolidate other high-interest loans into one lower interest payment.
 
Conclusion:
 
A HELOC can be a useful financial tool for homeowners who want to access the equity in their home. It can provide flexibility and convenience, and often has a lower interest rate than other types of borrowing. However, it is important to remember that borrowing against your home's equity does come with a certain amount of risk. If you are considering a HELOC, be sure to shop around for the best rates and terms, and carefully consider whether it is the right choice for you. With the right information and guidance, a HELOC can be a powerful tool to help you achieve your financial goals. 

Month in Review
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Here are some key points from the August Market Report Video

• FORECLOSURES: The ratio of serious delinquencies is in decline

• INVENTORY: Today's housing market is still very low in inventory

Does This Market Have You Stressed Out?
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I have over 20 years of lending experience and a 100% closing record. The Holly Walther Lending Team is among the top mortgage loan producers in all of Georgia.