Last week, three previous clients contacted me about Home Equity Lines of Credit (HELOC). They all wanted to tap into the equity in their house to do a renovation/home improvement project. Since all of them refinanced in 2021, they have 3% or less on their current mortgages, so they did not want to refinance and take cash out with a 7.5% mortgage.

Home Equity Lines of Credit

So, they wanted to learn more about Home Equity Lines of Credit. First of all, I don’t do stand-alone HELOCs. I have them, but you will get a much better price at your bank or credit union. But I am still happy to explain how they work!

What is a HELOC?

A HELOC is a line of credit secured by your house. You get approved for a limit to the line, and then you can draw on it as needed. You only pay interest on the outstanding balance. You can pay it off and reuse it, usually over a ten-year period, and then after the ten years, you have 20 years to amortize and pay it off. During the draw period (the first ten years), you are only required to pay interest. The rate is variable and tied to the Prime rate. It can change monthly. Your rate is determined by loan-to-value and credit score. If you need any additional information, always feel free to contact me.

IACP Conference

I had a wonderful trip to Toronto to attend the International Academy of Collaborative Professionals (IACP) conference. The training was excellent, and I enjoyed walking around Toronto. There were four of us from our Maryland Practice group at the conference. We met people from all over the globe but also had a lot of fun together! I drove to the conference, and the Alleghany mountains in Pennsylvania were breathtakingly beautiful with fall colors. I also took the time to see Niagara Falls.

Have a great week!