Mortgage line of credit calculator

What is a home equity line of credit (HELOC)?

A HELOC is a loan where your home serves as collateral. It allows you to borrow a certain amount of money, up to a certain percentage of your home's value, typically between 65% and 80%.

How does repaying a home equity line of credit work?

Repaying a home equity line of credit is flexible. You only pay the interest each month. However, you can repay the principal at any time, in full or in part, without penalty.

What is the difference between a home equity line of credit (HELOC) and a traditional mortgage?

Unlike a traditional mortgage, where you receive a fixed amount and repay according to a set payment plan, a HELOC offers you the flexibility to borrow and repay funds up to a predetermined limit.

Are interest rates fixed or variable?

Interest rates can be fixed or variable, depending on the product you choose. Variable rates generally fluctuate with the prime rate, while fixed rates remain constant for the agreed term.

Can I get a home equity line of credit if I have bad credit?

Yes, it is possible to obtain a home equity line of credit even with bad credit, but the terms (such as the interest rate) may differ. It is advisable to discuss your situation with a financial advisor.

Can I pay off my home equity line of credit early?

Yes, you can usually pay off your home equity line of credit early without penalty. This allows you to reduce the total amount of interest paid over the life of the loan.