Panama City Beach Properties for Sale

Home-Equity Lines of Credit

Posted on by Southern

1 (2)Are you looking to renovate your home? Perhaps you are in need of a little extra income to fund your upcoming Destin vacation. Whatever the reason may be, more and more homeowners have started to draw on their home’s equity to finance these expenses. 

A home-equity line of credit is a form of credit in which your home serves as collateral. More often than not, your home is your most valuable asset and offers the greatest potential in funding major items. However, keep in mind that if you are unable to pay back the borrowed amount plus interest, your home could be at risk of foreclosure. 

When it comes to applying for a home-equity line of credit, you must first determine if you are looking for a fixed or variable rate. Lines of credit tend to be variable where as loans are usually fixed. 

Once that is decided, you will be expected to fill out an application which asks for basic personal and property information. To speed things along, it is important to be prepared with the proper documentation. This can include everything from your pay stubs to property appraisals. 

For more homeowner and Northwest Florida real estate tips, contact your local RE/MAX Southern agent today. 

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