HELOC 2022: What You Need to Know
Ten years ago, HELOCs were commonplace in the industry and were regularly offered to borrowers, but that has changed. Many borrowers today are unfamiliar with them and unaware of the benefits they offer. HELOCs can do it all, from home improvement to debt consolidation, giving borrowers increased purchasing power, or even just offering peace of mind. What is a HELOC? HELOC is short for Home Equity Line of Credit and is a revolving line of credit obtained relative to the equity in a borrower’s home. A HELOC is similar to a credit card in that borrowers can draw funds off the line and then pay it back over time, only with a much lower interest rate! How much can be borrowed? HELOCs are similar to traditional loans in that borrowing power will be based on the equity in the borrower’s home, their income and liabilities, and their credit score. Our product with First Savings Bank can allow you to go up to the full value of your home, but this is dependent upon guidelines for the first mortgage. Why take out a HELOC? Home improvements: Instead of taking out a separate loan or running up large amounts on high-interest credit cards, using home equity to increase a home’s value with…
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Jumbo and Super Jumbo Loans: What Are They and Who Qualifies?
After a long lending squeeze brought on by the pandemic, we are now seeing more lending options come back to the market. One of those options lenders are proud to reintroduce are the Jumbo and Super Jumbo loans. Jumbo and Super Jumbo Loans give borrowers access to higher valued properties previously locked up in the market. For those who aren’t familiar with this type of loan or who just need a refresher, we’ve put together some basic info to help borrowers decide if this is the right choice for their financial future. What is a Jumbo Loan? Jumbo loans are any loans that exceed the conforming loan limit set by the federal government. These loans are for those seeking financing for more expensive properties and backed by lenders willing to take on more risk since they will typically have to hold the loan for a more extended period of time. Jumbo loans typically cost borrowers more than a conventional mortgage and the requirements are stricter. Borrowers will need to have higher credit scores and more equity than with conventional loans. Even though interest rates are low all around, jumbo loans will still be higher than a traditional loan. Why go Jumbo? Jumbo and Super Jumbo Loans offer borrowers more flexibility…
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