HELOC or Home Equity Line Of Credit works exactly like a credit card, when you use it
you pay interest, but much more cheaper than credit cards, for example the day credit
cards interest rate is 18-20% HELOC interest rate starts 3-5%
HELOC is very popular in today’s market, Mortgage rates are too high probably will be
reached to 8% soon, If you need money and trying to refinance your house and you
have your first loan with low interest rate STOP refinancing, you will lose your low
interest and your payment will be much higher, then try to get HELOC
This way you can keep your low interest rate first mortgage, and when interest rates
goes down again you probably refinance whole thing to one loan. Or if you are
financially better suggestion is to pay off your HELOC to keep your first mortgage rate
low!
Please check HomeLoansByCity.com or call us at Citywide Group for any questions you
may have. We are here to help.