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HELOC stands for Home Equity Line of Credit. This is a line of credit that uses your home as collateral. A HELOC can be used for things like home improvements, debt consolidation, an emergency reserve, or personal needs.
So now that you know what a HELOC is, let’s take a look at how it works. A HELOC is revolving credit, which means that available credit is replenished without having to apply for a new loan. This means you can borrow at any time up to the credit limit.
With a HELOC, the most important thing to remember is that you must owe less on you home then the value of your home to qualify. The amount of credit available to you will depend on the appraised value of your home, the balance of your home loan, credit score, income, employment history, and other qualification items. Interest rates are competitive, and you only pay interest on the amount borrowed.
F&M Bank is committed to providing our customers with a variety of loan options including Home Equity Lines of Credit. To learn more about a HELOC with F&M Bank or to discuss if it’s the right option for you, give us a call at (800)235-5331 or contact us here.
F&M Bank – banking that feels right. Member FDIC.