HELOC

A Home Equity Line of Credit (HELOC) allows homeowners to borrow against their home’s equity with a revolving line of credit. Unlike a traditional loan, a HELOC works like a credit card, giving borrowers the flexibility to withdraw funds as needed during the draw period. This makes it a great option for home improvements, debt consolidation, or unexpected expenses.

HELOCs typically have variable interest rates and require borrowers to make interest-only payments during the draw period, followed by repayment of the principal. Homeowners with strong credit and sufficient home equity may qualify for higher credit limits and lower interest rates compared to personal loans or credit cards. Since a HELOC is secured by your home, responsible borrowing is essential.

If you’re looking for a flexible, cost-effective way to access your home’s equity, a HELOC can provide the financial freedom you need. Understanding the repayment terms and potential interest rate changes can help determine if this option is right for you.

Disclaimer: Loan product guidelines are subject to change. Contact your Caritas Mortgage loan officer for the most up-to-date information.