With Mortgage Interest Rates Doubling Earlier this Year and Equity Being at an All Time High. A Home Equity Line of Credit is a Solid Choice for Homeowners...

ALAMEDA, CALIFORNIA, UNITED STATES, August 24, 2022 /EINPresswire.com/ -- The 3 Things to Look Out for When Getting a Home Equity Line of Credit in California.

With first mortgage interest rates doubling earlier this year and equity being at an all time high…for now. A Home Equity Line of Credit is the solid choice for homeowners looking to do home improvements, debt consolidation, or even just to have for unforeseen expenses and emergencies.

“The process is pretty quick and painless” explains Garrick Werdmuller, President, and CEO of Fresh Home Loan Inc. “It is a loan, we will need tax returns and paystubs and all that fun stuff, but appraisals are typically not needed, and the process can be as quick as a 30-day close.”

What is a Home Equity Line of Credit?
A home equity line of credit, or HELOC, is a second mortgage that gives a homeowner access to cash based on the value of ones’ home. A borrower can draw from a home equity line of credit and repay all or some of it monthly, somewhat like a credit card.

With a HELOC, one can borrow against the home equity, which is the home’s value minus the amount one owes on the primary mortgage. You can also get a HELOC if the home is owned outright, in which case the HELOC is the primary mortgage rather than a second one.

The three things to look out for:

1. IT IS AN ADJUSTABLE LOAN: A home equity line of credit or HELOC is tied to the Prime Rate of index which rises and falls with the Federal funds rate. The Prime Index is 3% above the federal funds rate. A HELOC has a margin over and above the Prime Rate which becomes a borrower’s actual rate.
2. KNOW YOUR MARGIN: A “margin” on a HELOC or Home Equity Line of Credit is the difference between the Prime Rate of Index and your actual rate. The actual rate is PRIME + the margin. The margin varies depending on the lender you choose, your equity, and the amount of credit you choose to seek.
3. KNOW YOUR CLOSING COSTS & PENALTIES: Beyond the Rate and Margin, your HELOC will have closing costs and penalties. Make sure you go over the estimates with your loan officer and make sue you are aware of anything that can happen with closing the line “early”.

Program Highlights:
o Purchase and Standalone Seconds.
o 89.99% Loan to Value
o First and Second Homes
o Minimum Fico 680
o Line Amounts up to $500,000
o Interest-Only Payments Available

A $50,000 minimum draw is required and can be paid back after the first payment. The loan is a 30-year term with a 10-year interest-only period and a 20-year term payback after the first 10 years.

Great for:
o Home Improvement
o Debt Consolidation
o Emergency Funds
o Bridge Funds for a Home Purchase
o Purchase Financing to Avoid Mortgage Insurance

Great for:
o Home Improvement
o Debt Consolidation
o Emergency Funds
o Bridge Funds for a Home Purchase
o Purchase Financing to Avoid Mortgage Insurance


For more information or to get a rate quote please visit: https://freshhomeloan.com/heloc/

Or contact me at:
Garrick Werdmuller
President CEO
Fresh Home Loan Inc
510.282.5456 call/text
garrick@freshhomeloan.com
www.FreshHomeLoan.com
NMLS 242952

All loan approvals are conditional and not guaranteed and subject to lender review of all information. Loan is conditionally approved when lender has issued approval in writing, but until all conditions are met, loan cannot be funded. Specified rates and [products may not be available to all borrowers. Rates subject to change according to market conditions and agreed upon lock times set by borrower. Fresh Home Loan Inc. is an Equal Opportunity Mortgage Broker in California. This licensee is performing acts for which a real estate license is required. Fresh Home Loan, Inc. is licensed by the California Department of Real Estate #02137513 NMLS # 2124104

Garrick Werdmuller
Fresh Home Loan Inc
+1 510-282-5456
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