What the Heck Is A HELOC?

A home equity line of credit - which lenders and mortgage brokers may refer to as a HELOC - is a different kind of home loan available today.

An equity line of credit will have different rates and terms from the conventional first mortgage rates. In a standard or conventional mortgage, your monthly payments cover both the principal and the interest, and possibly escrow, taxes and insurance.

An equity line of credit payment doesn’t reduce your principal loan amount and doesn’t include escrow. You’ll be borrowing against the equity of your home and paying the bank an interest premium on that loan - end of story. With a HELOC, you pay only the interest on the loan and you get the money for less time than you do a standard 1st mortgage.

How long does it take to apply for and be approved for a home equity line of credit?

The processing of these lines of credit is usually fast and easy, and can even be completed online. When the deal is done, you’ll either receive one lump sum payment by check or a new checking account that is pre-approved for expenditures.

Some reasons for home refinancing include:

To lower monthly payments To shorten the length of the mortgage To benefit from current low interest rates To pay for a renovation To consolidate bills How Will A Lower Interest Rate Effect Me?

One of the most common reasons to refinance your home loan is to benefit from new low interest rates. The interest rate that you pay on your mortgage makes a huge difference in your monthly payments. If you have an interest rate on your mortgage that is quite a couple points higher than the current market interest rate, you are likely to be paying much larger monthly payments than you need to be.

More articles on shortening the length of your mortgage, renovations and bill consolidation will be added here shortly. Be sure to visit again!

If you thought refinancing after bankruptcy was impossible, take heart!

You are able to refinance your home mortgage as well as lower your monthly payments. Generally all it takes is a 10 minute online application, and you’ll have a small variety of lenders to choose from.

Lenders - anxious to help you find the best mortgage refinancing - will generally contact you within a day of applying. You are not required or committed to any transaction, but the process does give you a variety of options to choose from, so never feel like your back is against the wall due to past circumstances.

Refinancing your mortgage after bankruptcy isn’t impossible.

You have nothing to lose and you will find that mortgage lenders are prepared to offer you better terms than you likely thought possible. Mortgage lenders have many loan types and programs to meet your financial situation, history, or goals for the future.

So, just because you’ve been through bankruptcy doesn’t mean you’re stuck refinancing your mortgage with a high interest rate or unacceptable lending terms.

If you have an undissolved bankruptcy in your past and you’re now wondering if it’s possible to refinance your home mortgage, you’ll be happy to know that you can now fill out an online application and within days you’ll have lenders, rates and terms to choose from.

Choose carefully and don’t settle for the first lender who’ll pre-approve you. The difference in terms could mean thousands of dollars saved over the length of the mortgage. Home refinancing is the single best way to benefit from current low rates.