HELOC: What is it and how do they work?

Open-ended credit lines enable you to draw funds secured by the value of a property offered as collateral. What is the most common form of such open-ended credit line? HELOCs. What are they?

The most commonly used form of open-ended credit is a HELOC (which stands for Home Equity Line Of Credit).

A HELOC works like a credit card: you only pay interest on your outstanding balance. You can draw down on the funds, and pay only the interest, or pay some interest and some principal.

If you pay the balance in full, there is no interest payment as interest can only accrue when there is an outstanding balance.

Typically, a HELOC has a 10-year draw period, meaning, if you pay the balance in full you are able to write a check and redraw from the account.

Additional comment:

Are you qualified to get a HELOC?

Our loan officers are here to advise you as to the best strategy to prepare your application for a HELOC. This is a personal conversation you have to have with your loan officer. When you work with Cliffco Mortgage Bankers, you work one-on-one with a loan officer -- not some faceless person shielded behind a 1-800 number who will never have any relationship with you -- like in big banks. Cliffco Mortgage bankers is a fully delegated mortgage banking institution. That means we originate and fund 100% of our loans. We will never pass your loan off to a third party (contrary to most big banks), and all credit decisions and underwriting are done in-house by our highly-educated loan professionals.

Contact Cliffco Mortgage Bankers to prepare your mortgage loan application the right way for success: 516-408-7300

Cliffco Mortgage Bankers is fully licensed in New York, New Jersey, Pennsylvania, Connecticut, Florida, and Texas. Our home office is in Uniondale, Long Island, NY. We cover all towns and hamlets of Long Island, as well other neighborhoods in NYC.

Have a Question? Start a Conversation With Our Expert:

 






            
        
        
        




    
        
            10%
            
                
                
            
        
        
        
            
                Thank you for reaching out to us. A member of our team will reach out to you shortly.
                
            
        
                                    
                                        
                                                
                            
                                
                                                                                            
                                                                
                                                                                                                
                                                                                            First Name
                                                                                                                                    
                                                
                                            

                                            

                                        
                                    
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                
                                                                                                                
                                                                                            Last Name
                                                                                                                                    
                                                
                                            

                                            

                                        
                                    
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                
                                                                        
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                        
                                                                                Email
                                                                                                                        
                                            
                                        
                                        

                                    
                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                
                                                                        
                                
                                

                                                                    
                                

                                
                                                                                                                                                                                                                                        
                                                                                Phone Number
                                                                                                                        
                                            
                                        
                                        

                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                
                                                                        
                                
                                

                                                                
                                                                        Questions?
                                                                                                            
                                        
                                    
                                    

                                
                                                                    
                                

                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                
                                        
                                            

                                        
                                    
                                                                
                                                        
                                                                                                                                
                                                                                                            
                                                                                                                                
                            
                        

                    
                


                            
        
            * Required Field