The No Closing Costs Home Equity Line of Credit (HELOC) is a special HELOC offered
to homeowners with above average credit histories. This is an aggressive program that
makes credit lines of $50,000, $100,000, or $200,000 available to homeowners, with no
closing costs to these homeowners. 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.
The interest rate 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.
to homeowners with above average credit histories. This is an aggressive program that
makes credit lines of $50,000, $100,000, or $200,000 available to homeowners, with no
closing costs to these homeowners. 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.
The interest rate 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.
No Closing Costs Home Equity Line of Credit
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