Have you heard of Chase’s home equity line of credit? If you have heard about it, do you know what it means? If you are one of the many persons who don’t know what a home equity line of credit means, then here is your chance.
Chase Home Equity Line Of Credit
A home equity line of credit is simple. Now what this means is this – A home equity line of credit is a type of revolving credit that makes use of your home as collateral or otherwise security for a debt. Many people use this form of collateral in applying for homes due to the amount they are applying for. And now that you already know what this means, do you know how it works?
Well with the little explanation I have written on it, you should at least have an idea as to how a home equity line of credit works. But if on the other hand you still haven’t gotten a full grasp as to how it works, you will have to continue reading.
How Chase Home Equity Line of Credit Work
The way the Chase home equity line of credit works is very simple and straightforward. With the right explanation, you should be up to speed on it in no time. With this type of credit life, the interest rate is variable. Or you can say the interest rate varies with this credit line.
The monthly payment amount that is required is based on the outstanding balance and this will include both the principal and interest. There is a draw period which is then followed by a repayment period. During the draw period, a borrower can borrow as much or as little as they want and whenever they need it. As long as your outstanding balance is paid, the available credit made available to you is replenished.
Do you know what the latter means? Well if you don’t, here it is. This simply means that the amount of money that you get to borrow increases up to your credit limit.
How to Know If You Are Eligible
Before you get to be eligible for this home equity line of credit there are things that first need to be in place. Chase will evaluate and go through a couple of criteria once your application for a line of credit has been received. These criteria include your credit history, income, employment, and also the amount of money that you want to borrow.
The company will also check your loan-to-value ratio. This is the relationship that is between your remaining mortgage loan balance and the value attached to your home. You can check your credit score easily and to do this, go to chase credit journey. You should also make sure that you understand the eligibility requirements very well before you set out to apply.
What You Can Use Your Home Equity Line Of Credit For
The home equity line of credit can be used for home improvements or repairs and consolidation of debt. With that being said, it is advisable that you borrow responsibly. You should also note that you can only borrow funds up to your credit limit during your draw period.
Benefits of Chase Home Equity Line Of Credit
There are lots of benefits associated with this type of line of credit. You can use what you need and when you need it with this type of credit line. What this means is that you get to borrow the exact money that you need for home improvements or home repairs and also consolidate high-interest debts.
Another benefit is that you can easily reduce your interest payments. Generally, the interest rates for a home equity line of credit are lower than credit cards and personal loans. And by consolidating your debt into a new line of credit, you also may be able to lower your interest payments. This will therefore help you to save more time.
Lastly, you get to enjoy potential tax benefits with this line of credit. It is reported that when you make use of a home equity line of credit for the improvements of your home, a small portion of your interest may be tax deductible. This is due t the fact that tax laws vary with each state. With that being said, you should have a talk with your tax advisor in regards to the interest that may be deductible based on your situation.
How to Get Started
To get started or apply for this line of credit, go to Chase Home Equity Page and apply for it online. Or you can simply locate a chase institution closest to you to get started.