Question:

What is 125% HELOC (home equity line of credit)?

Answer:

A 125% HELOC (home equity line of credit) is a loan of 125% the market value of your house extended to borrowers with very good credit rating. It is often offered as a quick cash access option, as well as a debt consolidation loan.

Often borrowers may choose the loan term. If the open end option is selected, payments will be due only on the amount you spent. A 125% HELOC may have tax-deductible interest as HELOCs often do - contact your tax advisor for more specific information.

The 125% home equity line of credit may be a very good refinancing and debt consolidation option which, when accomplished in a smart way, will get you lower payments, some free cash and greater tax-deductibility.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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