The All New Home Equity Lines Of Credit
(HELOC's)
Mortgages just are not what they used to be. Once upon a time everyone
knew that if you got a home equity line of credit, then it was over - the
plan did not change. Although this type of loan did have some great features,
they still were limited. Now, however, a new breed of mortgages has surfaced
that will give you many more options. Here are some new features that one
lender now puts on their home equity lines of credit.
The new home equity lines of credit seem to now be doing away with that
old limited format of locking you into a mode of staying put. Now you can
move out of the box, and can think about a much greater level of control
over your own mortgage. Sound impossible? Here are some things for you to
think about.
One new HELOC even allows you to go from an adjustable rate mortgage,
to a fixed rate mortgage - at will. What's more, you can take as much of
your HELOC - even all of it if you want, and convert it into a fixed rate
loan at any time. This certainly gives you a good degree of protection when
you need it against rising interest rates. The sudden change in interest
rates, is, of course, a concern that many people have these days - with rates
being so uncertain. Finally, here is your protection - at last.
Not only can you change your home equity line of credit into a fixed
rate loan, when you want, you can even make another portion of it into fixed
rate - twice in one year. But wait - it even gets a little better. You can
make this change into five separate loans, and have all five of them at the
same time. What's more, is that each one of these portions of your HELOC
can have different due dates and even different terms than the original
mortgage!
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You also can choose the way you make your monthly payments. Typically,
HELOC's are interest only payments during the draw period. Here, though,
you can make a choice as to whether you want to pay the interest only, or
make payments that will fully amortize the loan. Once again, it is about
you having control.
One of the main purposes of getting a home equity line of credit is
so that you can have access to cash - when you need it. You are given a credit
limit and access to it either with a credit card or a checking account. This
makes it easy to get at for whatever purposes you may have. If only you could
have an unlimited time to get that cash. Again, this has been thought of,
as well. When you pay off any of your converted loans (any of the five of
them), you instantly are given that amount of credit again. The good news
here - you do not even have to apply for it again. It is just there - available
and waiting for you to use the money again.
If you have ever thought about getting a home equity line of credit,
then this one would be well worth looking into. It gives a brand new meaning
to putting the customer first. Obviously, Washington Mutual wanted to break
out of the box and give you something that is different.
Copyright 2007 - By Mike Valles, not to be reprinted, copied
or circulated without written permission of the author.
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