Need some flexibility?
A Home Equity Line of Credit provides instant available funds that can be spent how you like. The HELOC is secured against your property, so the interest rate is lower than an unsecured line of credit and is based one the prime rate. The HELOC can be attractive if you are an investor, self employed, or in a seasonal occupation….or anybody who likes the flexibility. The minimum monthly payment required is interest only, so you will need to be very disciplined to insure you are paying down the HELOC. Some other benefits of a HELOC are they are fully open and can be paid down as much as you like at any time with no penalty, similar to when you use your credit card you pay it down, then your available limit is still there to use again. You only pay interest on the amount you have used, not your total credit limit.