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What will a Home Equity loan do for you?

Benefits of a Second Mortgage

If you have sufficient equity in your home, you may qualify for a second mortgage, either a Home Equity Loan (HEL) or a Home Equity Line of Credit (HELOC).

HELs and HELOCs are best for consolidating high-interest debt and paying for renovations that increase your home’s value.

The equity in your home is an important asset and understanding how to use it is an important. For help determining your options, speak with an iTrust Mortgage Consultant today.

HELOC vs. Home Equity Loan

A home equity loan is structured like a traditional mortgage—you receive money upfront and pay it back with interest over time. A HELOC is a line of credit, meaning you’re approved to borrow up to a limit and you pay interest on what you borrow

Generally, home equity loans give you access to larger amounts than a HELOC. But a HELOC has the advantage of flexibility; you pay interest only on what you borrow. This makes a HELOC ideal for borrowers who don’t know how much money they need.

Eligibility and Qualification Guidelines

Home Equity Line of Credit Home Equity Loan
  • Borrow up to 95% of your home’s value
  • Variable interest rate
  • Eligible on primary and second homes (1-4 units)
  • Minimum credit score of 680
  • Maximum debt-to-income (DTI) ratio of 45%
  • 10 year draw period with interest only payments, followed by a 20 year fully amortized repayment period
  • Borrow up to 95% of your home’s value
  • Fixed interest rate
  • Eligible on primary, second, and investment homes (1-4 units)
  • Minimum credit score of 620
  • Maximum debt-to-income (DTI) ratio of 50%
  • 5 to 30 year terms available

We’re here to help. So if you’re not sure if this type of loan is right for you, call us at (833) 86-TRUST.

 

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