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  • Writer's pictureFranny Yen

The Importance of an Equity Line (HELOC)

An equity line can serve as an investment tool when you purchase your next property, or when you use it as an emergency fund during the rainy days.

Most are qualified based on your income and up to 80% of the total loan to value of the property. Very few will go up to 90% and allow for an investment property.

Depends on your purpose, the highest line amount can be $1m.

You can replace to a new HELOC when the first 10 years- which is the draw period at interest only payment- is about to be expired, as it will become an expedited fixed term afterwards.

Here are some things to watch for when you apply:

  • Check out their turn time.

  • Find out the closing costs.

  • Base Rate = Prime rate + a margin. You have no control about the Prime rate, but you can look for the lowest margin.

  • Watch for early closing fees.

  • Will the intro rate really benefit you?

  • What is the annual fee?”

For questions, please don't hesitate to reach out!

Franny Yen

The Loan Story

NMLS 280923 DRE 01510328

4880 Stevens Creek Blvd, Suite 200, San Jose, CA 95129

408-691-3029(C) 408-366-0312 (e-Fax)

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