What is a Home Equity Line of Credit?
How a HELOC works With a HELOC, you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card. This means you can borrow against it again if you need to, and you can borrow as little or as much as you need throughout your draw period (typically 10 years) up to the credit limit you establish at closing. At the end of the draw period, the repayment period (typically 20 years) begins. Learn more about how HELOCs work
Qualifying for a HELOC To qualify for a HELOC, you need to have available equity in your home, meaning that the amount you owe on your home must be less than the value of your home. You can typically borrow up to 85% of the value of your home minus the amount you owe. Also, a lender generally looks at your credit score and history, employment history, monthly income and monthly debts, just as when you first got your mortgage.
Variable interest rate When you have a variable interest rate on your home equity line of credit, the rate can change from month to month. The variable rate is calculated from both an index and a margin… READ MORE
What is home equity and how can you use it?
- Equity represents the paid-off portion of your home: the amount you own outright (as opposed to the mortgage lender)
- You largely build home equity via your down payment, then as you pay off your mortgage. Property value increases and home upgrades can increase your ownership stake too.
- You can tap into your equity and use it for various expenses, via home equity loans and home equity lines of credit (HELOCs)
- Despite competitive interest rates and tax advantages, home equity financing carries risks and extra costs.
You may feel your home belongs solely to you. But if you bought it with borrowed funds — aka a mortgage — it technically doesn’t: It also partly belongs to the lender who advanced you the funds. Your own stake in your home is expressed as your home equity — “equity” being synonymous with “ownership” in financial lingo… READ MORE
Do’s and Don’ts for Using Home Equity
Equity is the difference between a home’s fair market value and the outstanding mortgage balance. When the housing market crashed in the fall of 2007 and into 2008, many homeowners across the nation lost much, if not all, of the equity in their homes.
Homeowners who do have equity in their homes have the option to borrow money against the equity they have built up with a loan or line of credit. In both cases, the house serves as collateral, which means the creditor may seize the home and sell it if the homeowner can no longer make the payments. Tapping into your home equity can be detrimental if you enter into the contract without fully understanding the repercussions.
While risky, there are some instances when a home equity loan makes good financial sense. To help you sort out the confusion, we’ve provided some common home equity do’s and don’ts… READ MORE
Ralene Nelson, REALTOR®
FOR SALE – 181 Cedar Ridge Dr. Rio Vista
$499,900 – 2 bed/2 bath/1,433sqft
New Price $499,900 – Look no further!! This Clipper model is like a new home, completely renovated, from new sheet rock to all new cabinets throughout, new baths, laminate flooring, quartz counters, appliances, and new interior & exterior paint. Located on the 11th fairway, bring some patio furniture & enjoy the scenery. This model provides a living room/dining room & a nook/great room. Trilogy provides so many amenities, including 2 swimming pools/spas, bocce courts, billiards, tennis courts, pickleball, gym & more. READ MORE
FOR SALE – 718 Allender Way, Rio Vista
FOR SALE – 98 Bruning Ave. Rio Vista
4 bed/2.5+ bath/2,554sqft/9,583SF
PENDING – 822 Summerset Dr. Rio Vista
2 bed/2 bath/1,800sqft/6,582sqft lot
$450,000 – Welcome to Trilogy at Rio Vista, the active adult community located near the Sacramento River, center of the Delta area. This Hatteras model is 2 bedroom, 2 bath plus den has somewhat of a private backyard. Home has an extended garage, so is 2.5 car garage, room for your golf cart or motorcycle. Kitchen has oak cabinets, white appliances & tile counters. Primary bath has jetted tub plus walk in shower. Home has livingroom/dining room & kitchen that opens up to family room, which is cozy with gas fireplace. Seller has left surround sound system. Primary bedroom views the rose garden in backyard & has access to patio w/cover. Great place for a spa. Trilogy offers many ammenities that include 2 pools (indoor & outdoor) with spas, tennis courts, bocce ball courts, billards, computer room, health center (gymn, massage & aesthetician), library, cafe, restaurant, golf course & clubs galore. Let’s make this your next home!! READ MORE
Events in Northern California this Weekend
Sidewalk Saturday, Downtown Rio Vista
9:00 AM – 2:00 PM
North 2nd Street and Main Street, Rio Vista
There will be crafts, vendors, music and fun on the streets and sidewalks of historic downtown Rio Vista. Stop by and enjoy the morning. WEBSITE
Hot August Cruise Night!
Saturday, August 19 · 5 – 9pm
Willow Park Mercantile, 205 G Street Antioch
This Annual Event is Super Fun! Cruise Downtown Antioch 5pm – 9pm All our downtown restaurants and stores will be open so come grab a bite to eat and enjoy the show. A lot of beautiful classic cars, great music and food! Come join the fun! This is a Celebrate Antioch Foundation & Rivertown Merchants Event, for more info visit. WEBSITE
Dixon Art and Wine Stroll
Saturday, August 19 · 4 – 8pm
Downtown Dixon,100 N 1st Street Dixon, CA 95620
Join is in lovely Downtown Dixon, CA, for amazing art, delicious wine and food, and a great atmosphere to enjoy them in! Stroll the historic downtown of Dixon, CA, while enjoying the opportunity to sample various wines, view unique artwork, and shopping opportunities. WEBSITE
Sacramento Banana Festival 2023
SATURDAY, AUG 19, 2023, 10:00 AM – 7:00 PM
SUNDAY, AUG 20, 2023, 10:00 AM – 5:30 PM
William Land Regional Park, 3800 W Land Park Dr, Sacramento
Go bananas at the 12th Annual Sacramento Banana Festival on August 19th and 20th, 2023, with live music, food, drinks, and fun for all age
The Banana Festival is a multicultural event celebrating cultures in Asia, Africa, and the Americas that use the banana as a source of food, art, and culture. A weekend full of banana foods, music, art, health, and family fun! WEBSITE