A HELOC is a line of credit that lets you get cash from your home equity. It works similarly to a credit card – you can take out as much money as you need, up to your maximum limit. When you pay down some of your balance, you can take out funds again.
You can use your funds for anything you need, whether you're looking to renovate your home, pay down high-interest debt, or put a down payment on an additional property.
How much you can get depends on how much equity you have in your home. You'll need to retain 20% of your home equity after you receive your HELOC. There may also be additional limitations based on your DTI (debt-to-income ratio). Generally, homeowners can get up to $350,000 with a Point HELOC.
Point's HELOC provides lower rates and a much higher maximum limit than either a credit card or a personal loan. However, while credit cards and personal loans are unsecured, a HELOC leverages the equity in your home to get you the funds you need.
Point's HELOC and Home Equity Investment (HEI) are both great ways to unlock your home equity. With a HELOC, your cost is based on an affordable interest rate. With an HEI, your cost is based on a share of your future home appreciation, and you don't take on an additional monthly payment.
If you have good credit and want the best possible price, a HELOC might be the best fit. If not having a monthly payment is most important to you, you might prefer the HEI. Point's home equity experts can help you figure out whether a HELOC or an HEI is the right fit for you.