A Home Equity Line of Credit – commonly referred to as a HELOC – can be a great option for Baton Rouge and New Orleans homeowners to secure credit. HELOC is not a traditional home loan, but rather it gives property owners credit based on the home’s existing equity. If you’re considering a HELOC loan or you’re wondering what the requirements are to secure a HELOC on your property, the experts at MidCity Title company are here to break it all down for you. Don’t miss our Home Equity Line of Credit services page that breakdowns a ton of information and FAQs on the credit line and the process.
What are the requirements for a HELOC in 2024?
Similar to a traditional home loan, HELOC requirements will vary from lender to lender. However, there a few common factors you should meet to make a HELOC make sense for your situation. First, MidCity Title recommends you have a certain level of equity in your property. In order to qualify for a home equity line of credit, owners should have anywhere from 15% to 20% equity in the house. In addition to equity levels, homeowners should have good credit before securing a HELOC. We recommend anywhere from mid-600s to 700+. Lenders will review your credit score and credit history before approving you for a home equity line of credit. Finally, property owners interested in securing a HELOC loan should be prepared to provide documentation tied to income, on-time payment history, employment verification, and more. Getting your documents together ahead of time will save you a headache from scrambling to organize them during the application process.
How does the interest rate on a HELOC work? Is it fixed or variable?
Usually HELOC rates will be variable-rate APRs. This means a borrowers monthly payment can change as interest rates rise or fall. It’s important to note that some lenders will offer a fixed rate on a HELOC for a set period of time; once that time is up the rate than becomes variable. When researching and securing a HELOC, it’s important to cover the terms and payment schedule specific to your application.
As a homeowner, what would I use a HELOC for?
Uses for home equity line of credit can really vary. However, here are some common reasons people take out a HELOC on their property: additions to a home, home renovation projects, consolidating debt, purchasing additional properties, emergency or unexpected expenses. If you’re unsure if a HELOC makes sense in your specific case, we’re happy to chat through the specifics.
Contact the MidCity Title Team Today for More Information on Securing a HELOC in Baton Rouge and New Orleans
Keep in mind that every situation is unique, and the specialists at MidCity Title are ready to guide you through your individual HELOC requirements and questions. MidCity Title has offices in both New Orleans and Baton Rouge. When considering if a home equity loan is right for you, it is crucial to fully understand the expectations, repayment structure, and details. Recognizing that the HELOC process can be complicated, the MidCity Title team in Baton Rouge and New Orleans is committed to simplifying it as much as possible for you. Contact our Baton Rouge and New Orleans title experts today at (225) 236-4252 or arrange a meeting to visit us in person. Seize the opportunity to leverage the equity in your home with a Home Equity Line of Credit (HELOC)!
Recent Comments