Posted by Charles Clark on January 06, 2003 at 22:01:54:
HELOC’s come in adjustable rate (normal-adjust normally every month, but there are different programs out there. They normally on based on a margin plus the LIBOR rate. You can get a Fixed Rate HELOC, but rates are much higher, of course you are getting a safer loan.
Charles Clark
neiloans@hotmail.com
what is heloc? - Posted by corby lachat
Posted by corby lachat on January 06, 2003 at 20:40:58:
i’ve seen the word heloc used in various questions and answers and would like to know the definition please. thanks corby
Re: what is heloc? - Posted by Dick Chelten
Posted by Dick Chelten on January 06, 2003 at 21:39:26:
Home Equity Line of Credit
HELOC is a line of credit. - Posted by GMann
Posted by GMann on January 07, 2003 at 12:59:03:
Banks are the ones who usually offer HELOCs. They will usually place a 2nd mortgage (can be a 1st mtg.) against the property for the amount of the credit line. So basically you have a credit line that is secured by a 1st or 2nd lien on your home. HELOCs usually come with a check book and/or credit card.
Most HELOCs are PRIME based adjustables. If you borrow a total of 80% (combined $ amount of 1st and 2nd divided by the home value) and you have good credit the going rate is PRIME.
If you borrow a combined total (termed CLTV-combined loan to value) of 90-100% of the homes value then you will get
PRIME + 1-4%.
Check with your local banks for terms. You should be able to find one for no or very little closing costs.