| Services: | Refinancing | Home Purchase | Home Equity |
| Mortgage Brokers | Construction / Commercial | Borrow Wisely |
Home Equity
A home equity line of credit is a form of revolving credit, wherein you only pay for what you use. Once that is paid off you can re-access the funds. Home Equity plans usually set a fixed time period during which you can borrow (usually 10 years) and a fixed time period to repay the loan (example 15-25 years). Once the time of 10 years for borrowing is up, the lender may allow you to renew the credit line.
Typically you will receive a checkbook with which you access your home equity balance. Some plans only allow you to write a check for a minimum (such as $250).
There are some costs when obtaining a home equity line or loan. Many lenders have a no closing cost option where you would pay a small broker fee out of the credit line, but no other cost. Then there is a low closing cost option, whereby paying the closing costs from the credit line the lender usually will have a lower interest rate.
The interest rate on a Home Equity Line of Credit is a variable rate or adjustable rate. You will be given a margin that is added to the prime interest rate to give you the interest rate that you pay on your outstanding balance.
Reverse Mortgages
We are proud to offer reverse mortgages for those individuals 62 and older for their primary residence. A Reverse Mortgage is a federal government program through the FHA and started in 1987 which allows you to take a portion of your home equity and turn it into tax free income, with no payment on the loan until the last borrower is no longer in the home. Please contact us for more information about this valuable loan program.
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