How Does a HELOC Work?

Searching for mortgage advice? We will be glad to help! Call us at 952 417 8481. Want to get started? Apply Online Now.

When you need to borrow some money to consolidate debts or buy a big-ticket item, a home equity line of credit (HELOC) may be useful. Using your home equity as collateral, a HELOC is revolving credit. This open-ended loan can be charged up or paid down over the loan term. The loan interest typically changes every month

With a HELOC, the lender will approve you for a particular amount of credit - the highest sum you may borrow at any one time. In deciding your credit limit, your salary, outstanding debt, credit status and additional monetary obligations will be considered. You are required to have a home appraisal to determine your home's present value. Your property's up-to-date value, subtracted from your remaining mortgage loan balance will help to determine your particular credit limit.

Alerus Mortgage can answer questions about Home Equity Lines of Credit and many others. Call us: 952 417 8481.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question