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Home Equity Line of Credit in Georgia
Many homeowners in Georgia are sitting on a substantial pile of equity in their homes, and they are looking for a great way to access that equity. Equity is initially established with your down payment at the time of purchase, and you may have put down 15 or 20 percent or more as a down payment. In addition, property values generally appreciate over time, further increasing your equity. Your regular mortgage payments also reduced your outstanding debt, adding to your equity. As you can see, there is a good chance that you have great equity in your home if you have owned it for more than a few years, and a home equity line of credit in Georgia is a convenient way to access that equity. Funds are often used for debt consolidation, home renovations, traveling, investments and more.
Is a Home Equity Line of Credit Right for You?
A home equity line of credit is just one way for you to access your equity. For example, you can also complete a full cash out refinance or apply for a home equity loan to access your home’s equity. With a line of credit, however, you will be keeping your first lien in place, and this may be ideal if you have a great rate and term established on your primary mortgage. Furthermore, you can make draws against your home equity line of credit as needed for a period of several months in most cases. You simply use the checks or debit card attached to your line of credit to make convenient draws as desired. If this sounds like a great option for you, you may want to look further into a line of credit as an option.
How Much Money Can You Borrow?
Before you decide to apply for a home equity line of credit in Georgia, you need to ensure that this option will provide you with sufficient capital for your needs. You may have been able to take out a 95 percent loan more when you purchased your home, but this is not the case when you are pulling equity out of the home. In most cases, your total debt on the home cannot exceed 70 to 75 percent of its current value, and this takes into account the first lien mortgage. Therefore, you must determine what 70 to 75 percent of the current value of the home is as a first step. Then, you must subtract the current outstanding balance of the first lien. If a second lien is in place, it must be paid off as well. By taking into account all of these factors, you can determine how much your home equity line of credit may be.
Who Offers Home Equity Lines of Credit in Georgia?
You also need to determine if your monthly payments will be affordable for your budget, and this means that you must review estimated loan terms and get a full pre-qualification from top lenders. There are many banks and credit unions in Georgia that offer home equity lines of credit, but you may want to start your search with the top lenders. These include Third Federal, Delta Community Credit Union, Fifth Third Bank, BB & T and others.
Applying for a home equity line of credit is not a matter to take lightly. The debt may take years or decades to repay, and your equity will be reduced as a result. If you decide to take out a home equity line of credit, carefully review the lenders and terms so that you make an informed decision and get the best deal possible.