Home Equity Line of Credit (HELOC) in Denver
There are two different kinds of home equity loans within Denver. They are similarly named but function very differently. There are home equity term loans and home equity lines of credit (HELOC). Home equity term loans is a lump sum loan based on the equity in your Denver home that is to be paid back over a designated amount of time. This contrasts with a home equity line of credit, which functions a little more flexibly.
What is the home equity line of credit offered by US Mortgages?
Home equity lines of credit offer the opportunity for Denver home owners to leverage their equity to their benefit. Think of it like a credit card with a time and a credit limit. These lines have a variable interest home equity loan rates that change over the course of the loan. They also require withdrawal of a certain amount each time the line of credit is accessed.
Home equity lines of credit are perfect for those with less fixed, varied expenses to ensure that they always have access to funds, while protecting the borrower from overpaying interest on money they aren't using. Many people choose a home equity line of credit to pay for college expenses, or to reinvest in their home with an expansion or remodeling.
Alternately, a home equity loan is ideal for borrowers looking to pay off a large, one time expense. While a home equity loan will have an interest rate greater than that of a home equity line of credit, it its tax deductible up to $100,000, and is paid back in fixed monthly payments. Ideal for single large expenses, these loans are perfect when an unexpected cost interrupts your budget.
Would you like to learn more about the home equity line of credit offered by US Mortgages?
If you'd like to learn more about the HELOC loans offered by US Mortgages in Denver, let us know your contact information and we'll be in touch as soon as we can. Alternatively, feel free to give us a call at our Denver office with any questions you may have about home equity lines of credit or any of the other loan products we offer.