How Does a HELOC Work?

	Shopping for a Home Equity Line of Credit? We'd be thrilled to answer your questions about our mortgage offerings! Call us at (215) 661-9570. Ready to get started? Apply Now.

When you want to borrow some money to consolidate funds or purchase a big-ticket item, a home equity line of credit (HELOC) might help. A kind of revolving credit, a HELOC is secured by the equity in your home. This open-ended loan may be be charged up or paid down during the loan term. The loan interest rate generally fluctuates monthly

Your lender will specify your credit limit (the maximum amount you may borrow) with the HELOC. In determining your credit limit, your salary, outstanding debt, credit status and any other financial circumstances will be reviewed. You will be required to do a home appraisal to determine your home's present market value. Your credit limit will be determined on all of your financial information, as well as a percentage of your property's appraised market value, which is subtracted from the balance owed on your existing mortgage loan.

At Diamond Mortgage Company, we answer questions about Home Equity Lines of Credit every day. Call us at (215) 661-9570.