Why Should you get a Home Equity Line of Credit? It's Simple...
Few people take full advantage of the equity in their homes.A lot of folks were unaware of this, but there is a financial product that allows you to draw funds from the paid down equity on your mortgage. This is called a 'Home equity line of credit' or 'Home equity loan'.
For example, if you had a mortgage of $300,000 but have $100,000 paid down, you are able to tap into a portion of that $100,000 as low interest credit for household renovations, debt consolidation, education or emergencies. The beauty and opportunity of the home equity line of credit is the reduced interest rate, since the loan is based off of your existing assets... A lower risk.
Time Lines and ProcessThe home equity line of credit operates more like a credit card, in which you can only borrow up to the maximum as agreed upon with your vendor. Though there is an expected timeline for the loan to be paid back. I suppose a credit card has this, though they seem to go on infinitude :)
To get the process of a home equity loan started, you should first take note of all of the THINGS you'll want to use the potential funds for... Pay down other debt, check; Pay for some renovation materials and labor, check. The list can go on and on - Only you know what you really need. Total it up, and head over to your bank or broker with your plan. I'd recommend going to Morgix mortgage agency. There's an office around the road from us in Toronto, so they were not only a great local choice, but a great and personable environment.
*You can find more about Morgix financial offerings on their services page.
HELOC - Home Equity Line of CreditOne of the main differences between a HELOC and a conventional loan, besides the timeline mentioned above and that the amount is drawn more like a credit card - Is that the interest rate, though low, is variable. It will be tied to a financial index, typically the prime rate (Perhaps plus a point... A fellow's got to make a profit after all). This fluctuation is likely not going to impact you very much, but it's just something to keep in mind if you wish to have all the facts on hand when deciding on your next financial move.
Why Choose Morgix for your HELOC Home Equity Loan?Morgix is developing a reputation for immensely personalized financial services. There is no feeling of 'revolving door' syndrome (The feeling you get from big banks where there's no personality and no relationship. Cold.)
The agents at Morgix respect the client and are more than motivated to reach their collective financial goals. Your success, is their success, and that means the door is always open.