Home Equity Line of Credit

Enjoy the Flexibility of Home Equity Lines
Low minimum payments with Interest Only Options

A home equity line of credit from Nationwide Mortgage Loans offers low interest cash out financing with more payment flexibility than traditional home equity loans. Homeowners can use and re-use the credit line that turns the equity in their home into a personal ATM.

How does the interest rate work for home equity credit lines?

Home equity lines of credit carry a variable interest rate that revolves like a credit card. And like a credit card the interest rate can adjust periodically depending upon the stability of the index it is linked to. Convert Adjustable Rates to be Fixed Consolidate bills together Eliminate High Rate Debts Make Home Improvements 1st-time Homeowners OK Competitive Low Equity Rates Don't Pay Mortgage Insurance (PMI)

Are you "Living the Dream of Homeownership"?
As a homeowner you are rewarded with more opportunities to finance the finer things in life. It may or may not be fair, but you are in a position to make home improvements, purchase a 2nd home, or wander off on your dream vacation. Home equity rates are still low, but most experts are predicting more rate hikes in the next few years. Take advantage of the equity in your home and start realizing those dreams.

At Nationwide Mortgage Loans, our first priority is to help our customers find the ideal Home Equity Line of Credit for their individual needs. We are dedicated to making sure that your lending experience is as easy and enjoyable as it can be. Let us help you reach financial stability today! Apply for a Home Equity Line of Credit!

Frequently asked Questions for Home Equity Lines of Credit

What is a home equity line of credit?
Home equity line of credit, AKA HELOC, is a second mortgage, but it's not a simple interest loan like the traditional fixed rate second mortgage. Home equity lines have a revolving credit line for which your home is used as the security. The mortgage interest rate and payments are variable.

Their rates can fluctuate and change periodically according to the prime index as reported in the Wall Street journal. It is based upon this index plus a margin that is determined and stated in the agreement. The term is defined by a draw period that is usually 10 years. Interest only payments are the only payments due during the draw period.

How do we determine how much equity we have?
If you are considering a second mortgage, then it is important to understand how much equity you have. Most loan programs allow you to borrow up to 100%. In some cases you may qualify for 125% second mortgage, that allows you to exceed your home's value. To estimate your equity in your home, take the difference between the value of a property and any outstanding mortgage balances. (ie. If your home is valued at $225,000 and you mortgage balances total $175,000, then you have $50,000 in estimated equity.)

What can I use a home equity line of credit for?
The options for how you spend the money is up to your discretion. The majority of homeowners are using their equity lines for consolidation debt, financing home improvements, financing education, and purchasing a 2nd home.

How do I compare second mortgage loans & home equity lines?
APR is the primary method for comparing the cost of credit. The Federal Truth in Lending disclosure evaluates interest charged, origination fees and other closing costs charged for the loan. Don't forget that the APR Disclosure is required by the federal Truth-in-Lending Act. It was created to assist and borrowers in comparing the costs of different mortgage loans. The APR, is a critical factor to analyze when researching home equity loans, and 2nd mortgages because it usually considers both interest and fees. Remember though that when you are comparing a fixed rate second mortgage to a home equity line of credit that you want to compare apples to apples. Home equity Lines are the exception to the APR Disclosure of the Federal Truth in Lending Laws, because they don't require the lender to factor in points and closing costs with the interest rate. Therefore the APR for home equity lines of credit is not a true reflection of the cost of credit.

What are the primary advantages of a home equity line of credit?
The primary advantages from a home equity line of credit are lower payments monthly, because only the interest is due for the portion of the line that you accessed. The other benefit with an equity line of credit, is that the interest rate is lower in most cases than the credit card rate.

In most cases, home equity lines of credit enable you to deduct the interest you pay when you file your tax return. Usually the interest you pay on credit cards not deductible for tax purposes. Consult with your tax advisor regarding the deductibility of interest.

Can I make additional principal payments?
Yes. You may make additional payments and request for it to be applied to pay down the principal.

Is there an early termination fee?
Some home equity loan programs do not have a "pre-payment" penalty for paying off the home equity line of credit. However some home equity programs do have an early termination fee if you actually close the line.
(check state policy for termination fees)

Need Cash for Home Improvements? Click Here for a Home Equity Line of Credit