Home Equity Line of Credit (HELOC)

Make your home work for you.

 

Owning a home gives you more than shelter.  It provides a way to build value to draw from when you need cash.  Capstone can help you maximize your home's value with a home equity line of credit (HELOC).  Whether you opt for a home equity line of credit or traditional second mortgage loan, Capstone will make sure you have financing that’s just right for you.

 

A HELOC is a form of revolving credit in which your home serves as collateral.  Many homeowners use a HELOC for major items, such as debt consolidation, education, home improvements or medical bills.  They are not typically used for day-to-day expenses.

                 

Before making a decision, carefully weigh the costs of a home equity line against the benefits.  Capstone will work closely with you to provide credit terms to best meet your borrowing needs without posing undue financial risks.

 

Variable Interest Rates
HELOCs generally involve variable rather than fixed interest rates.  The variable rate must be based on a publicly available index (such as the prime rate published in some major daily newspapers or a U.S. Treasury bill rate).  In such cases, the interest rate you pay for the line of credit will change, mirroring changes in the value of the index. 

 

Most lenders cite the interest rate you will pay as the value of the index at a particular time, plus a ‘margin’ (such as 2 percentage points).  Because the cost of borrowing is tied directly to the value of the index, it is important to find out which index is used, how often the value of the index changes, and how high it has risen in the past.  It is also important to note the amount of the margin.

 

Lenders sometimes offer a temporarily discounted interest rate for home equity lines – an ‘introductory’ rate that is unusually low for a short period, such as 6 months. Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your interest rate may increase over the life of the plan.  Some variable-rate plans limit how much your payment may increase and how low your interest rate may fall, if the index drops.

 

Some lenders allow you to convert from a variable interest rate to a fixed rate during the life of the plan or let you convert all or a portion of your line to a fixed-term installment loan.

 

 

 

Make your home work for you.

 

Owning a home gives you more than shelter.  It provides a way to build value to draw from when you need cash.  Capstone can help you maximize your home's value with a home equity line of credit (HELOC).  Whether you opt for a home equity line of credit or traditional second mortgage loan, Capstone will make sure you have financing that’s just right for you.

 

A HELOC is a form of revolving credit in which your home serves as collateral.  Many homeowners use a HELOC for major items, such as debt consolidation, education, home improvements or medical bills.  They are not typically used for day-to-day expenses.

                 

Before making a decision, carefully weigh the costs of a home equity line against the benefits.  Capstone will work closely with you to provide credit terms to best meet your borrowing needs without posing undue financial risks.

 

Variable Interest Rates
HELOCs generally involve variable rather than fixed interest rates.  The variable rate must be based on a publicly available index (such as the prime rate published in some major daily newspapers or a U.S. Treasury bill rate).  In such cases, the interest rate you pay for the line of credit will change, mirroring changes in the value of the index. 

 

Most lenders cite the interest rate you will pay as the value of the index at a particular time, plus a ‘margin’ (such as 2 percentage points).  Because the cost of borrowing is tied directly to the value of the index, it is important to find out which index is used, how often the value of the index changes, and how high it has risen in the past.  It is also important to note the amount of the margin.

 

Lenders sometimes offer a temporarily discounted interest rate for home equity lines – an ‘introductory’ rate that is unusually low for a short period, such as 6 months. Variable-rate plans secured by a dwelling must, by law, have a ceiling (or cap) on how much your interest rate may increase over the life of the plan.  Some variable-rate plans limit how much your payment may increase and how low your interest rate may fall, if the index drops.

 

Some lenders allow you to convert from a variable interest rate to a fixed rate during the life of the plan or let you convert all or a portion of your line to a fixed-term installment loan.

 

 

 

 

Copyright © 2017 Capstone Mortgage Company, Inc.

  NMLS Company ID #1445; MA Broker License #MB1445


Copyright © 2017 Capstone Mortgage Company, Inc.

  NMLS Company ID #1445; MA Broker License #MB1445