If you are like most people, you have a 15- or 30-year mortgage and you will be making payments for that entire time. However, when you meet with a HELOC loan advisor, such as Replace Your University, they will share a different option with you. Rather than sticking with this lengthy mortgage, they will tell you what you need to know about a home equity line of credit.
What Is a HELOC?
Your HELOC loan advisor will explain to you what a HELOC is and why it benefits you. It is a home equity line of credit, and it is a different way to finance your real estate. One of the benefits is that it uses a simple interest line that resets daily based on your current balance. You can have 100% liquidity, and you can use what you need and pay as much as possible. You never need to worry about an emergency because you have your line of credit.
Why a HELOC Makes Sense
If you have a traditional mortgage, you can always pay extra each month. In fact, you can pay as much as you want. However, you need to make sure that you have the money you need in case of an emergency because once you make a payment on your mortgage, you can’t access that money again. However, your HELOC loan advisor will show you how your line of credit is always accessible. This means that you can pay it off with extra money because the line of credit is available if you have an emergency. The result is that you will spend less on your mortgage and have the flexibility to live your life the way you want to.
