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Originally Posted by BlaqK20
Okay, I have a new question. I ran into a client who wanted something in regards to his "Home equity line"...I'm pretty sure this is something everyone knows, but I'm clueless as to the mortgage lingo. What does that mean and what do you do with a "Home equity line" ?
Thanks.
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Yep, Yakk is correct.
He meant a Home Equity line of credit (sometimes referred to in the biz as a HELOC)
Basically, it is an open line of credit secured by real estate - very similar to a credit card - except if you don't make these payments, they can take your house
Depending on the institution, there are a variety of different ways that Helocs work. Most come with checkbooks - when the check is written out, it will simply be added to your loan balance, and now many companies are coming out with credit cards that you can use.
Payments are calculated similarly to credit cards as well, with a minimum payment of $X (normally $50.00) or a percentage of the balance (normally 2%)
Hope this helps
