Mortgage Blog
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Get The Cash You Need With A HELOC
April 26, 2023 | Posted by: Angela Robinson
Need cash for home renovations, debt consolidation, or a major purchase? Consider a Home Equity Line of Credit (HELOC). Unlike a traditional mortgage, a HELOC allows you to access funds up to a certain limit, like a credit card. Plus, you can pay back principal and interest at any time without penalty.
Here's how it works: a HELOC is a second mortgage that's tied to the value of your home. You can borrow up to 65% of your home's value and pay back the loan over 25 years. During the first 10 years, you can make interest-only payments and then pay back the principal over the remaining 15 years.
Keep in mind that a HELOC has a variable interest rate tied to your bank's prime rate, so it may go up or down over time. And since there's no regular payment of principal and interest, it's important to plan for balloon payments to pay off the mortgage at the end of the amortization schedule.
Ready to learn more about how a HELOC can help you achieve your financial goals? Contact us today at 780 701 3888 or marc@albertamortgagepros.ca to speak with one of our mortgage specialists.
https://www.albertamortgagepros.ca/index.php/mortgages-heloc
