Peak Home Mortgage | 25147 Foothills Dr. N| Golden, CO| 80401| Tel: Cell 303-378-4003 - NMLS 1008665 - CO Lic. 100044763
Call us: 303-526-9620
Mortgage Loans to fill your needs
Our services are available in Denver, Boulder, Longmont, Loveland, Greeley, Ft. Collins,
Colorado Springs, Pueblo, Mountain cities, Grand Junction, Montrose, Durango and every
city in between. Just give us a call and we will be able to let you know if we can help in a
few short minutes!
What is a Home Equity Loan (HELOC)?
A home equity loan is a type of loan in which the borrower uses the equity of his or
her home as collateral. Home equity loans are often used to finance major expenses
such as home repairs, medical bills, or college education. A home equity loan creates a
lien against the borrower's house and reduces actual home equity.
Most home equity loans require good to excellent credit history, reasonable loan-to-
value and combined loan-to-value ratios. Home equity loans come in two types: closed
end (traditionally just called a home-equity loan) and open end (aka a home-equity line
of credit). Both are usually referred to as second mortgages, because they are secured
against the value of the property, just like a traditional mortgage. Home equity loans
and lines of credit are usually, but not always, for a shorter term than first mortgages.
Home equity loan can be used as a person's main mortgage in place of a traditional
mortgage. However, one cannot purchase a home using a home equity loan, one can
only use a home equity loan to refinance. In the United States, in most cases it is
possible to deduct home equity loan interest on one's personal income taxes.
There is a specific difference between a home equity loan and a home equity line of
credit (HELOC). A HELOC is a line of revolving credit with an adjustable interest rate
whereas a home equity loan is a one-time lump-sum loan, often with a fixed interest
rate. This is a revolving credit loan, also referred to as a home equity line of credit,
where the borrower can choose when and how often to borrow against the equity in
the property, with the lender setting an initial limit to the credit line based on criteria
similar to those used for closed-end loans. Like the closed-end loan, it may be possible
to borrow up to an amount equal to the value of the home, minus any liens. These
lines of credit are available up to 30 years, usually at a variable interest rate. The
minimum monthly payment can be as low as only the interest that is due.
Typically, the interest rate is based on the prime rate plus a margin.
Home Equity
(HELOC)
Colorado Loans
There are many different loans and often more than one that will work
for you. Peak Home Mortgage invites you to talk with us and let us help
you decide what is best for you. Review the other options below