No Closing Costs HELOC

NOTE: We are currently not offering any Home Equity Line of Credit or Home Equity Loan amid difficult credit market.

The No Closing Costs Home Equity Line of Credit (HELOC) is a type of HELOC offered to homeowners with above average credit histories. This is an aggressive program that makes
credit lines of up to $100,000, available to homeowners, with no closing costs to them. Homeowners incur interest charges only from the moment they borrow from the credit line.

The No Closing Cost HELOC has a 30-year term; an initial 10-year "draw period" followed
by a 20-year "repayment period". During the "draw period", a homeowner can borrow from
the credit line as much and as often as he wishes, up to the credit limit. The homeowner
makes monthly payment on only the interest accrued. No repayment of the principal is
required during the "draw period". During the "repayment period", no more draw is allowed.
The balance owed is amortized to be paid off over the next 20 years. In reality, most
homeowners obtain a new HELOC to pay off the current one and start another interest only
period.

Interest rates of this No Closing Cost Home Equity Line is based on Prime. Prime is an
index of the average interest rates that major banks offer to their most valued customers.
Depending on the income documentation and credit profiles, the current HELOC interest
rates are between Prime + 0% to Prime + 0.75%.

HELOC is a mortgage secured by a home. Most have the usual closing costs associated with
other mortgage settlements. These closing costs include recording fees, mortgage tax, title
search, title insurance, underwriting, attorney, etc.

This No Closing Costs HELOC loan program is exactly what its name implies, no mortgage tax, no title insurance, no county recording fees, no closing costs! This No Closing Cost HELOC is available only in Full Docformat. This program is limited to properties that are single family, duplex, condominium, or cooperative. It is not available to multi-family and commercial buildings. Depending on property type and document type, credit line amount is available up to 100% of the home value. Please call or email me for more information.

The following is a example of this No Closing Costs HELOC program. A homeowner has a
condo worth $250,000. He has a first mortgage of $150,000. His qualifying credit score is
700. He obtains a No Closing Cost HELOC of 90% Combined-Loan-to-Value with a credit
limit of $75,000 (90% of $250,000 minus the outstanding first mortgage of $150,000), with an
interest rate of Prime. This HELOC does not cost him anything. He can borrow any amount
during the 10 years "draw period", up to $75,000. Assuming he borrows $30,000 and Prime
is currently at 7.75%, he will have monthly interest only payments of $193.75 ($30,000 X
7.75% divided by 12 months). If at any time he pays off $5,000, his mandatory monthly
payment becomes $161.46 ($25,000 X 7.75% divided by 12 months). At the end of the
10-year "draw period", he will start paying off the principal over the next 20 years. Or he
would obtain a new HELOC to pay off the current HELOC.