A home line of credit is a flexible financial product, allowing you to continually borrow and repay as needed. It lets you tap into funds to make home improvements, invest in a second property, or consolidate high-interest debt. There are two types of home line of credits, namely secured and unsecured.

Secured Home Line of Credit

A Secured Home Equity Line of Credit is a secure form of credit in which the lender uses your home as security (collateral). There are two types of Home Equity Line of Credit loans, one that is combined with a regular mortgage, and the other a stand-alone product. The good thing is that Home Equity Line of Credits are revolving credit which means you have the option to borrow, pay what you borrow back, and repeat as often as you like. The minimum payment is interest-only and you have the option of making lump sum payments anytime with no prepayment penalties.

If you are purchasing a home, we can help you add a Home Equity Line of Credit to your mortgage. As you pay down the principal on your mortgage, the equity in your home increases. You can access that equity in the form of credit. The increased credit is made available to you on a monthly basis. Our experts at Afi Mortgage Group will assist you know your financing options better. They smooth the process of purchasing your dream home, and offer you the right advice, guidance, and options all along your way.

Unsecured Home Line of Credit

Unsecured home lines of credit are available from some lenders. Unlike a secured home equity line of credit, an unsecured one does not require you to use your home as collateral. Instead, the lender will assess your creditworthiness and income to determine your eligibility for the line of credit. The main advantage of such loans is faster approvals and less paperwork. It’s worth noting here that unsecured lines of credits typically come with higher interest rates and lower credit limits than secured lines of credit.

We examine your credit score and your income, then help you obtain an unsecured home line of credit for which no collateral is required. Unsecured home lines of credit are very flexibility and have usually lower upfront costs. Depending on the intended use of the funds, the interest paid on an unsecured home line of credit may also be tax-deductible.

To get more information regarding Home Line of Creidt, please contact us directly via phone or email. Let us arrange for a one-on-one consulting session during which we will offer you a totally free consultation. Alternatively you can use our online contact form to request an appointment with us. WE ARE HERE AND WE ARE READY TO HELP YOU.