Home Equity Credit Lines from the Home Loan Magician
Home Loan Magician offers home equity lines of credit (HELOC) to homeowners for available cash out. Borrowers like credit lines because they offer immediate cash at any time. Credit lines present opportunities for borrowers to rehabilitate their home or to make investments.
Many people simply like HELOC's because in an emergency situation the credit lines offer cash and you do not have to wait for the month long loan process.
Home Equity Credit Lines offer many benefits:
- Quick Access to Money
- Interest Only Charged when HELOC is used
- Borrowers don't have to make Principal and Interest Payments
- Tax Deductibility to 100% with home equity interest paid.
- Opportunity to purchase a 2nd home
- Cash Reserves offer emergency access to funds when needed
- Lower Interest Rates than unsecured loans
- Easy Access to Money for Home Repairs
- Compare Terms on Home Equity Credit Lines Now
Home Equity HELOC Report
During the real estate boom the demand for home equity lines of credit increased climbed sharply as property values rose, interest rates fell and lenders made it easy for borrowers to tap their equity for everything from home improvements to vacations. Borrowing against home equity freed up roughly $187 billion in cash per year between 2001 and 2005 that was used to pay off other debts and for new spending, according to a recent paper by former Federal Reserve Chairman Alan Greenspan and Fed economist James Kennedy.
Now, the slowdown in home-equity borrowing is leading to weaker sales in some markets for autos, building materials and electronics, says Mark Zandi, chief economist of Economy.com. The slowdown has been particularly notable in parts of the country that are suffering most from housing and mortgage corrections, including Boston, Minneapolis, Miami, Las Vegas and Washington.
Rising short-term home equity rates drove rates for home equity lines of credit to an average of 8.7%, up from as little as 4.64% in April 2012, according to HSH Associates. HELOC's carry a variable interest rate, usually tied to the prime-lending rate, and give homeowners the right to borrow up to a certain amount, either all at once or over time. For more information from our premier lending associate please visit Nationwide Mortgages for today's home equity line rates.