How do HELOCs work?

November 8, 2022 By : Quick Insurance Guru Floral Separator

A HELOC or credit line is a revolving line of credit.

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You can withdraw money as many times as you need after the draw period.

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Most of the time, you only have to pay the interest that accrues during the draw period.

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A life cycle from which to obtain a loan with a repayment period can be shortened.

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Your home may have a minimum value below the amount you owe on your mortgage.

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HELOC requirements

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1. At least 15% to 20% equity in your home

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2. Minimum credit score of 620

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3. A debt-to-income ratio, or DTI, of 43% or less

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4. Adequate, verifiable income

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THANKS FOR READING!

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