A HELOC is a Home Equity Line of Credit. It can be a convenient way to deal with big one-time expenses without draining your checking account.
Essentially, it allows you to borrow money with your home as the collateral.
Unlike refinancing your existing mortgage, which gives you a certain amount of money all at once, a HELOC offers you the flexibility of a revolving line of credit.
How much money you can access is determined by the current equity you have in your house and your credit history.
Most HELOCs are used for major expenses - such as home updates and repairs, college tuition or large medical bills. A HELOC offers some serious advantages, but they are not without risk.
- Regardless of your your maximum draw amount, you take only what you need (when you need it), and only pay interest on what you draw.
- Often low upfront costs compared to other types of loans.
- Often lower interest rates than credit cards or other unsecured loans.
- When interest rates go up, the rates on HELOCs do too, and they go up a lot faster than they do on other loan types.
MAX offers several HELOC options, all with competitive rates and easy-to-understand terms. Learn more about each of MAX’s home equity products and compare their features to find the one that’s right for you.