As discussed in previous articles, a Home Equity Line of Credit, or HELOC, is a loan where the borrower uses the equity in their home as collateral. It operates much like a credit card, giving you a revolving line of credit that you can draw from as needed.
How do I access HELOC funds?
Once approved for a HELOC through Tennant Lending, you can access funds in several ways: writing checks, using a card linked to your account, or transferring money directly to your bank account. Tennant Lending offers convenient access methods tailored to your needs.
Can I refinance my HELOC?
Yes, refinancing your HELOC is possible and can be beneficial if you're looking to lower your interest rate or change the terms of your loan. Tennant Lending offers refinancing options that can help you adjust your HELOC to better suit your financial situation.
Refinancing your HELOC with Tennant Lending can potentially lower your monthly payments or provide you with more favorable terms. It's important to consider the closing costs and fees associated with refinancing to ensure it's the right decision for your financial future.
How does repayment work?
Repayment of a HELOC typically involves two phases: the draw period and the repayment period. During the draw period, you can borrow against your line of credit and may only be required to make interest payments. Once the draw period ends, you enter the repayment period where you must pay back the principal plus interest. Tennant Lending offers clear guidance on repayment plans to help you manage your finances effectively.
Tennant Lending ensures that borrowers are fully informed about their repayment obligations for their HELOC. Understanding your repayment terms is crucial for financial planning and avoiding potential issues down the line.
Disclosures and Risks of HELOC
Tennant Lending advises borrowers to carefully consider their ability to repay before taking out a HELOC. By understanding the risks and managing your borrowing wisely, you can use a HELOC to meet your financial goals without jeopardizing your home.
Tennant Lending is a licensed, premier mortgage lender based in Northern California. Access exclusive real estate insights by clicking "Join Tennant Lending" below.
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