by
Stacy Wise
| Jun 21, 2022
HELOCs
Written by Andrea Klinedinst, Compliance Assistant
Summer is the perfect time to start on working on some of your goals, whether it’s finally doing that house project, paying college tuition, or going on that long-awaited trip. But knowing how to pay for those goals is another story.
Borrowing against the equity in your home with a HELOC is one way to help you accomplish those goals. Our expert on HELOCs, Jodi Hyde, Mortgage Loan Officer at our Macomb Banking Center, answered some questions to help you better understand HELOCs and how they can help you accomplish your goals.
What is a HELOC?
Jodi Hyde (JH): A HELOC is a home equity line of credit that allows homeowners to use the equity in their primary residence for various purposes.
How can you use a HELOC or what could you use a HELOC for?
JH: A HELOC could be used for just about anything a borrower would like to use it for. It could be used for home improvement, renovations, college tuition, purchase of a vehicle, vacation, etc. There really is no end to how the funds could be used.
What are the benefits of a HELOC?
JH: There are several benefits to a HELOC. One of the benefits to a HELOC is that the funds can be used for anything the borrower chooses. Another benefit is the closing costs associated with a HELOC are usually less than costs associated with a second mortgage. A HELOC requires interest only payments each month, based on the funds that have been advanced on the line of credit, rather than a monthly principal and interest payment on the entire loan amount. The HELOC can be used over and over during the term of the loan as it is paid off and re-borrowed.
What are the qualifications for getting a HELOC?
JH: The borrower(s) need to have acceptable credit scores and debt-to-income ratios. The loan-to-value cannot exceed 80% of the property’s value, or 90% for a HELOC special. The property securing the HELOC must be the borrower’s primary residence.
Why should you choose MNB for this product?
JH: Because we want to be your bank for life! We make the loan process very easy for this product as well as all of our loan products.
A HELOC is a great option for borrowers that have equity in their home. It’s a nice product to have, even if a borrower thinks they might not use it.
If you have questions about HELOCs or our other mortgage loan products, give us a call at 877-647-5050 to
set up an appointment with one of our lenders today. Or to get started with the HELOC process, you can
visit our lending page and apply online today!