Home Equity Lines of Credit

If you have sufficient equity (value) in your property, a home equity line of credit (HELOC) is a great financing option.  An HELOC has unlimited uses.  How you use the loan proceeds is up to you.  The proceeds may be used for home improvement, tuition, the purchase of a photovoltaic system, a down payment to purchase another property, etc.  Or the line of credit may be used as an emergency source of funds.  And the interest that you pay may be tax deductible so please consult with your tax advisor about the deductibility.  Since this is a line of credit, you will be charged interest only on the outstanding balance; no balance, no interest and the line of credit will be available to you for up to 10 years.   If you have an outstanding balance, your monthly payment amount will be based on repayment of 20 years or $100, whichever is greater.

To calculate the equity you have in your property, we take up to 75% and in some cases up to 90% of your property value as determined by an automated value model (AVM), real property tax assessment or third-party appraisal, depending on your situation.  If you have a first mortgage loan secured by the property, we then subtract the first mortgage loan balance.  The remaining amount is the equity that you have, which you can borrow against.

Following is an example where the value of the property is $400,000 and there is a first mortgage loan balance of $200,000 with a loan-to-value ratio of 75%:

Property Value
 $400,000
 x75%
 
 $300,000
Less 1st Mortgage Balance
-$200,000
Equity
 $100,000

Max CLTV

Valuation Method

Max Loan Amount

75%

Automated Valuation Model or Real Property Tax Assessment

$250,000

80%

Third-Party Appraisal

$250,000

90%

Automated Valuation Model, Real Property Tax Assessment or Third Party Appraisal

$50,000

Please apply online or give us a call or schedule an appointment if you are interested in a HELOC.

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