HELOC – Home Equity Line of Credit. The wolves in sheep’s clothing. At least it was back in the day before the fall of the last real estate market.
Actually, to be able to take money out on one’s home to pay bills, complete upgrades, additions, or remodeling, should be every homeowner’s right.
If the equity exists, why not use it to your advantage.
The interest rate is typically lower than you’d pay for a credit card.
However, when taken out without forethought, some homeowners got into trouble.
Back in the day, before the crash of the last real estate market, some bought homes at the height of the market.
Buying stuff – as George Carlin spoke about
Some home buyers bought before that and took money out to pay for stuff. A lot of that “stuff” had nothing to do with their homes, increasing their value or making them better to live within.
Today the Home Equity line of credit is making a comeback, and can you guess what states where a majority of this is taking place? Florida and Arizona. The same states where there was a “king’s share” of the foreclosure activity.
All I can tell our real estate clients is that the HELOC rules are not the same as in the preceding years. Taking out 100% of the equity is going to be an impossibility today.
30% LTV – loan to value – may be your maximum
As a home owner, wanting to take out funds from the equity you have, you may be limited to 30% and no more.
It’s going to depend on your current mortgage, credit score and financial prowess.
Before you make this move, make sure you think it through. If you are going to use the money for home improvements, focus on the kitchen and bathrooms first. They add more value to the home than any other home improvement in the Santa Clarita Valley Cities.
Here are the PDF reports for the Santa Clarita CA housing market.
You will see the cities we are most prominent within, separating Single Family homes from Condos/Townhome configurations.
Our Top REMAX of Valencia CA Team is ready…
Be safe and make sure you contact our REMAX of Valencia CA Paris911 Team for more information concerning what your Santa Clarita Area home is worth and if you want us to set you up on a Santa Clarita real estate monitoring system to keep tabs on your specific home and direct neighborhood.
It is indeed our HONOR to be of assistance. Reports updated for the First week of September 2014 by REMAX of Valencia’s Paris911 Team of Realtors.