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Home Equity Credit Line

If you own a home now is the time to set up a home equity line of credit that provides emergency cash anytime. If you own a home, establishing an affordable line of credit is one of the many luxuries. Smart Home Equity provides home equity credit lines with variable interest rate offers for revolving home equity accounts. Our Home Equity Lenders can help you secure additional financial security with cash lines simply by using the collateral of your home like you did with your first mortgage. A home equity line of credit is perfect for promoting peace of mind, in case you need access to funds quickly.

Smart Home Equity is your online connection for all types of home equity credit. Our stellar relationships with banks across the United States enable you to qualify for low home equity credit rates that are available at your disposal. Smart Home Equity recommends an equity credit line of credit to a borrower that is unsure about how much money they need to borrow, and for homeowners who aren't clear about when they will need to access the home equity line of credit.

  • Lower Payment Credit Lines
  • 100% Financing & Credit
  • Stated Income and Full Doc Options
  • HELOC Rate Lock Feature
  • Check Writing Access
  • Competitive Equity Rates
  • No Advance Required at Closing
  • First Time Homeowners OK
  • Home Equity Interest is potentially Tax Deductible
  • Interest Only Payments
  • Home Improvement Financing
  • Emergency Monetary Funds

Money doesn’t grow on trees, but equity in your home can get you cash in a pinch.

Smart Home Equity offers a unique home equity line of credit program that allows borrowers to access money up to 100% of their house value. The 100% home equity credit line requirements look for fico scores in the high 600's with no mortgage late payments being reported from any lenders in the last 24 months.

Taking out a Home Equity Line of Credit or Using Credit Cards for Funding a Home Remodel

According to an article entitled "Rates Rise" on Origination News, Freddie Mac's Primary Mortgage Market Survey indicates that the average 30-year fixed mortgage rate rose from 3.28% to 3.31% over the seven-day period.

In the article, Freddie Mac also reported that the average 15-year fixed mortgage rate rose from 5.94% to 5.96%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages climbed from 6.02% to 6.03%, and the average rate for one-year Treasury-indexed ARMs increased from 5.42% to 5.44%. This raises the question on whether it's best to use a home equity line of credit (HELOC) or credit cards for your home improvement project.

A home equity line is one of two types of home equity loans you can get. The other is a fixed rate residential loan known as a home equity loan or 2nd mortgage.

Although short-term interest rates have been recently on the rise, they still are a lot lower than what you're paying on your credit cards.

Besides, interest from a home equity line of credit is deductible and credit card interest usually is not. And, unlike credit cards, the home equity rates you are charged with home equity lines is based only on what you use, not the credit limit. So, if you have a $20,000 limit on your HELOC, and you only use $5,000, the interest you pay will only be on the $5,000 rather than the $20,000 credit limit.

The only concern to drawing from your home equity for construction financing is that the home equity line works like a credit card--you can draw from the line repeatedly. If used irresponsibly, and the payments aren't made, you could lose your house. As long as you keep these risks in mind, the credit line can be a highly effective way to fund your home remodeling project because it offers the flexibility of being able to repeatedly draw from the line, so you can pay different contractors at different times. Also, during the draw period of typically 5 - 10 years, you can make interest only payments. Although, it's actually a better idea to pay down your balance and keep it down, if possible.

Mortgage Refinance Lenders, BD Nationwide commonly recommends that home equity line of credit be used for shorter-term, fluctuating needs, such as ongoing remodeling projects, college tuition or emergency funding for medical bills. If the variable interest rate of credit lines is what's holding you back, you can always refinance later after the home improvement project is completed and your home has appreciated and convert the adjustable rate interest to a fixed rate second mortgage.

Funding a New Business with a Home Equity
Line of Credit

Banks typically only want to lend money to companies that have some sort of collateral, yet at the same time most new businesses don't have any collateralized assets when they form. And, business loans are difficult to qualify for because banks generally require 3 years of income statements, which most new businesses don't have. So, what are the options for a business start-up?

Typical ways start-up businesses raise money when they don't qualify for bank loans include credit cards and personal loans.

The problem with these approaches is that they usually don't generate enough money. Second mortgages are becoming increasingly popular for securing start-up funds because they are a relatively simple way to get larger amounts of money. But, which is better a home equity loan or a home equity line of credit?

An equity loan involves getting a lump sum of money, upon which the borrower immediately starts making principal and interest monthly installment payments. Home equity loans are good for one-time expenses, but are not as good for the day-to-day operations and fluctuating expenses of a start-up business. Home equity lines come in handy for start-up businesses to help manage cash flow and pay for items that require a large upfront payment where capital isn't immediately at hand. Another reason home equity lines are popular funding sources is because lines of credit generally do not have as many fees or closing costs as home equity loans. They also offer flexible credit lines that business owners draw from again and again as needed by simply writing a check or electronically transferring funds.

In addition to being easier to qualify for than business loans, 2nd mortgages and home equity line rates are lower than business rates. According to Bridge Home Mortgages, the going interest rate for a $30,000 home equity loan is a little over 8%, and credit lines carry an interest rate of about 8.13% for a $30,000 credit line and 7.64% for $50,000. This is about 2% less than the typical rates of small business loans. You also have the option of making interest only payments in the early years when you need it most--when your business is not yet making money. There are still a few bad credit lenders that specialize in consolidation loans for people with all types of credit.

Once your business starts making money, you can start paying back the principal. If the purpose of the loan includes building a home office onto your home, you can refinance later after the home improvement project is completed and your home has appreciated. Another option you have is to convert the adjustable rate to a fixed rate second mortgage. With all this flexibility, it's no wonder home equity lines of credit are such popular start-up funding sources.

Additional Home Equity Options from Smart Home Equity
Second Mortgage Refinance
Pay off your HELOC or refinance the adjustable rate 2nd loan.
Interest Only Home Equity
Stated income home equity loans that require little or no income documentation
Home Equity Loan Refinance
Home equity loan refinancing with fixed rate terms.
Bad Credit Home Equity Lines
Get cash for debt relief and consolidation even if your credit scores are bad.

 

The residential financing team at Smart Home Equity can help you minimize interest while seizing great financial rewards from your home equity.
Fixed Payment Home Equity Loans

Utilize your home equity!
Most homeowners are getting wise to adjustable rates, but if you have put off consolidating your credit cards or variable line of credit, take a minute and discuss a fixed payment home equity loan that could save you quite a bit of cash over the years.
Cash Back Equity Loans
100% Home Equity Loans
Interest Only Equity Credit Lines

Pay interest as you use!
Home equity credit lines offer so much strength to homeowners when just considering their potential. They are great for investing or emergencies and you only pay interest when you use the line.
Home Credit Lines
Home Mortgage Refinance Loans

Refinance to lower rates!

Consumers holding ARM’s are refinancing in great numbers because of the significant fear of escalating rates that will cause the mortgage payments to rise immediately.
Sub-Prime Equity Loans
No Doc Home Equity Loans

Home Purchase Loans

Finance a beautiful home!
Many people across the country are finding out that purchasing a home is easier than imagined. Smart Home Equity works with trusted banks for financing 1st time homebuyers.
Home Improvement Loans

Finance Home Remodels

Homeowners should stop using their credit cards to finance home improvements because the interest rates for fixed rate home equity loans are much lower & they will be able to borrow more to get their projects done right the 1st time.
Pool Construction Loans

Home Construction Loans

Build a New Home!
Building a new home is not as cumbersome as many homeowners believe. Smart Home Equity works with construction lenders who have automated the process.

More Smart Home Equity Pages
- Cash Back Equity Loans
- 100% Home Equity Loans
- Financing 1st Time Homebuyers
- Pool Construction Loans
- Sub-Prime Equity Loans
- No Doc Home Equity Loans
- Home Construction Loans
- Home Improvement Loans
- Finance Home Remodels

Company Pages

Home Equity Options

Debt Consolidation

FHA Home Loan Options

 
Home Equity Quote Fixed Rate Home Equity

Bad Credit Home Equity Loans

FHA Home Refinance Loan

 
Loan Application High Loan-to-Value Equity Loans Sub Prime Home Equity

Cash Refinancing with FHA

 
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Home equity loans are subject to lender and underwriter approval. This is not an advertisement for credit. Disclaimers
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