A home equity line of credit (or security line of credit) may be a good option of getting cash out of your equity. Even though it is not as popular as the service of debt consolidation, for example, it may appear beneficial for many people. So what is a security line of credit and how is it different from a home equity loan?
Indeed, a security line of credit allows you to get cash at ultra-low interest rates by securing the debt against your equity (usually banks require that your share in equity should be at least 35%), the same way as a home equity loan does. So what is the difference? A security line of credit makes a difference by providing you with a standing access to funds (unlike a home equity loan, which is given only once). It means you may borrow the funds whenever you need them at ultra-low interest rates and then pay them back. The benefits of such product are obvious.
In particular, people usually spend money taken with the help of security line of credit on various major purchases, home renovations, elective medical expenses, vehicle purchase, education expenses, residential property, debt consolidation, and various types of investments. It is a really great way to get cheap financing and pay it back as soon as you are able to. In addition, you are able to set a fixed payback plan that will help you to organize your finance and pay off the account faster.
By getting a security line of credit, you get a constant 24/7 access to cheap funds while just securing the debt against your equity. Even though you can borrow as much as up to 80% of the face value of your house, usually the needs of clients are limited up to 50%. Yet no matter what are your needs, our mortgage broker will explain you all the details about getting a security line of credit and help you to arrange it.
In addition to that, we guarantee that our mortgage broker will give you valuable advices concerning how it is better to deal with your debts in order to prevent default or other dire financial situation. Thus, you may stay calm about your equity and enjoy ultra-cheap financing. Just contact us and you will get a professional help of a highly experienced mortgage broker with a great expertise.