What is a home equity line of credit (HELOC), and how does it work? Is a home equity line of credit the same as a home equity loan or a mortgage? How can I obtain a home equity line of credit*? And finally, what are the best ways to use a home equity line of credit? Though it all may sound confusing, a home equity line of credit is actually quite simple and it can be a powerful tool to have in your financial toolbox.
In this episode of Financial Cents, Brent Cannon, executive vice president and director of community banking, sits down with Ana Ochoa, vice president and private banking relationship manager, to discuss HELOCs. According to Ana, “a home equity line of credit is a line of credit that you use based on the equity you have in your home, whether it’s a primary home, second home or vacation home*”. She goes on to explain that unlike a home equity loan, “you can borrow and pay it off, and still have the credit available after you pay it off.”
This makes a home equity line of credit a great financial tool, especially since there is no origination cost, no appraisal fees and no title fees.
“It’s really a great source for a cash reserve based on the inexpensive nature of getting into a home equity line of credit,” Brent adds.
For most folks, a home equity line of credit is commonly used for home improvement projects that ultimately increase the value of the home, consolidating debt or to have in case of unexpected emergencies or opportunities. According to Brent, home equity lines of credit are great for debt consolidation because the interest rates are so low.
To conclude the discussion, Ana talks about the idea the home equity lines of credit are great to have in case of emergencies. “It's such an advantage because there are so many things that could happen, that it almost feels like the home equity line of credit could be a safety net for certain financial responsibilities that you may have,” she said.
Financial Cents is hosted by Brent Cannon, executive vice president and director of community banking, and features real answers to the real questions that Arizona businesses and individuals have about money. With each episode featuring veteran bankers from National Bank of Arizona, Financial Cents provides the insights you can only get from a friend in the business.
Subscribe from your favorite podcast platform by visiting nbaz.com/financial-cents.
A division of Zions Bancorporation, N.A. Member FDIC.
*Subject to credit approval and property evaluation. Terms and conditions apply. Contact a banker for details. NMLS #467014
Check out more content Financial Cents content by visiting: https://www.nbarizona.com/financial-cents/
What is a home equity line of credit (HELOC), and how does it work? Is a home equity line of credit the same as a home equity loan or a mortgage? How can I obtain a home equity line of credit*? And finally, what are the best ways to use a home equity line of credit? Though it all may sound confusing, a home equity line of credit is actually quite simple and it can be a powerful tool to have in your financial toolbox.
In this episode of Financial Cents, Brent Cannon, executive vice president and director of community banking, sits down with Ana Ochoa, vice president and private banking relationship manager, to discuss HELOCs. According to Ana, “a home equity line of credit is a line of credit that you use based on the equity you have in your home, whether it’s a primary home, second home or vacation home*”. She goes on to explain that unlike a home equity loan, “you can borrow and pay it off, and still have the credit available after you pay it off.”
This makes a home equity line of credit a great financial tool, especially since there is no origination cost, no appraisal fees and no title fees.
“It’s really a great source for a cash reserve based on the inexpensive nature of getting into a home equity line of credit,” Brent adds.
For most folks, a home equity line of credit is commonly used for home improvement projects that ultimately increase the value of the home, consolidating debt or to have in case of unexpected emergencies or opportunities. According to Brent, home equity lines of credit are great for debt consolidation because the interest rates are so low.
To conclude the discussion, Ana talks about the idea the home equity lines of credit are great to have in case of emergencies. “It's such an advantage because there are so many things that could happen, that it almost feels like the home equity line of credit could be a safety net for certain financial responsibilities that you may have,” she said.
Financial Cents is hosted by Brent Cannon, executive vice president and director of community banking, and features real answers to the real questions that Arizona businesses and individuals have about money. With each episode featuring veteran bankers from National Bank of Arizona, Financial Cents provides the insights you can only get from a friend in the business.
Subscribe from your favorite podcast platform by visiting nbaz.com/financial-cents.
A division of Zions Bancorporation, N.A. Member FDIC.
*Subject to credit approval and property evaluation. Terms and conditions apply. Contact a banker for details. NMLS #467014
Check out more content Financial Cents content by visiting: https://www.nbarizona.com/financial-cents/