Considering a HELOC? Here’s how much you can get

with high prices grocery store and constant (albeit slightly cold) Inflation, many Americans are looking for new ways to save and cut debt. For homeowners, this can take shape Refinancing Lower interest rates or potentially even a shorter loan term. Some older homeowners may want to consider its benefits Reverse mortgage.

Borrowers with equity in their home can also pursue one Home Equity Line of Credit (HELOC). This type of credit gives homeowners access to the existing equity in their home as credit they see fit. It is usually preferable to take out a personal loan or credit card (the latter often have higher interest rates).

But how much can you actually get from a HELOC? And is now a good time to get one? We will explore the answers to both of these questions below. If you think you might benefit from a HELOC, start exploring your options here or use the table below to check your eligibility.

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How much money can you get with a HELOC?

The amount of money you can get through a HELOC depends on the guidelines of the specific lender you’re using, as well as the amount of equity you have in your home at the time of your application. Most lenders will cap a home equity line of credit at 80% of your home equity although some lenders may go above that figure (although, once it goes above 80% you may pay more in interest).

There are several factors that will affect how much you can get with a home equity line of credit. These include but are not limited to:

• Your credit history. Yours is higher Credit score And good to you Loan history The more HELOCs you can apply for.
• The value of your home. It may not always be fair, but the amount you can get on a HELOC will be largely determined by the value of your home at the time of application. If home prices are higher during a seller’s market, you’ll likely be able to get more than you would if you applied when the home market was underperforming.
• Mortgage balance. The longer you own your home the less you owe to the lender and the more equity you have in your home. So new owners will have significantly less access to HELOCs than borrowers who have lived in the home for decades, if not decades.

Not sure how much HELOC to get? You can easily plug in some numbers here or use the table below to find out how much you qualify for

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Who should get a HELOC now?

While everyone’s personal financial situation is different, there are some compelling reasons why homeowners may want to switch to a HELOC now. Here are the two main ones:

• Inflation can help. As mentioned above, inflation has hit the bottom line for millions of Americans. A HELOC can help make ends meet by paying off your own home equity. HELOCs can be used to pay off debt, make home repairs, pay for schooling, or anything else a homeowner needs. And because interest rates are typically low (think roughly 7% to 8%), it’s often cheaper to use than some other types of credit.
• Your home value is still high. “The national median single-family existing-home price rose 4.0% from a year ago to $378,700,” National Association of Realtors As noted on February 9. “An estimated nine in 10 metro markets registered home price gains in the fourth quarter of 2022 even as mortgage rates rose 7%,” the association said. It’s simple math: If your home is worth more, you’ll have more equity than at play if the real estate market is weak. So if you need the boost a HELOC can provide — and your home is worth more than it was — now might be a good time to act.

You can find out how much of a HELOC you can get right now by plugging in your zip code and a few simple numbers. You can easily use the table below to determine the eligibility.

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