Home Equity Line of Credit
A HomeLife Home Equity Line of Credit is often called a HELOC. It is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term) where the collateral is the borrower's equity in his/her house. ". HomeLife's numerous Banking relationships and extensive underwriting knowledge ensure a competitive edge in the market, which in turn enables us the ability to offer our clients the best available rates and terms. Setting up an appointment with our friendly staff for a free individualized loan consultation is a phone call away.
A HomeLife HELOC differs from a conventional home equity loan in that the borrower is not advanced the entire sum up front, but uses the line of credit to borrow sums that total no more than the amount, similar to a credit card. At closing you are assigned a specified credit limit that you can borrow up to. During a "draw period" (typically 5 to 25 years), HELOC funds can be borrowed "on demand" and you pay back only what you use plus interest. Depending on how much you use the HELOC, you will have a minimum monthly payment requirement (often "interest only"); beyond the minimum, it is up to you how much to pay and when to pay. At the end of the draw period, you will have to pay back the full principal amount borrowed either in a lump-sum balloon payment or according to a loan amortization schedule.
Another important difference from a conventional loan: the interest rate on a HELOC is variable based on an index such as prime rate. This means that the interest rate can - and almost certainly will - change over time.
HELOC loans have become very popular in the United States in 2000s, in part because interest paid is typically (depending on specific circumstances) deductible under federal and many state income tax laws. This effectively reduces the cost of borrowing funds. Another reason for the popularity of HELOCs is the flexibility not found in most other loans - both in terms of borrowing "on demand" and repaying on a schedule determined by the borrower.
Hard Equity
A HomeLife Hard Money Loan is a specific type of financing in which a borrower receives funds based on the value of a specific parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and not yet qualifying for traditional financing. Whereas hard money often refers to not only an asset-based loan with a high interest rate, but can signify a distressed financial situation such as arrears on the existing mortgage or bankruptcy and foreclosure proceedings are occurring.
Debt Consolidation
A HomeLife Debt Consolidation Loan is the action of combining several loans or liabilities into one loan. The debt consolidation process of taking out a new loan to pay off a number of other debts such as credit cards and installment loans, results in large dollar savings on a monthly basis. Other additional benefits of having a HomeLife Debt Consolidation Loan is that it allows our customers to generally attain a lower interest rate, lower their monthly dues, take advantage of the tax benefits, or having the simplicity of a single loan. ".
Refinance
A HomeLife International Refinance refers to the process of paying off an existing loan with the proceeds from a new loan. Our clients often seek to refinance in order to secure a lower interest rate, to lower a monthly payment, or the need to draw cash-out from the equity in their home. In addition, a mortgage refinance often reduces the term of a loan and/or allows a borrower to switch between a variable and a fixed rate. A refinance often consists of the same size loan, using the same property as collateral.