What’s a HELOC?
Home Equity Line of Credit (HELOC) is a loan that lets you borrow a specific amount to cash out of your home equity. It can also be used to buy your home!
How do you use a HELOC to buy your home with Home.LLC?
Usually people get a 80% mortgage, 10% HELOC, and 10% down payment (80-10-10) to buy their home.
By helping you reach 20% down, HELOC helps you to purchase the home quickly and eliminate private mortgage insurance (PMI) payments.
Once the home purchase is closed, Home.LLC can refinance your HELOC. That way, you can pay off the HELOC and replace it with our debt-free investment. This is usually done within 2-3 days of closing the home purchase.
What are the costs of using a HELOC?
Almost none. Usually HELOCs don’t have any prepayment penalties. So you can pay it off once you buy the home.
However, you can be charged a few hundred dollars if you “close” your HELOC within the first few years. So, you can keep your HELOC “open” after paying it off to avoid paying any fees.
Is this worth it?
Let’s say you want to buy a $1,000,000 home using just 10% down.
|Without Home.LLC||With Home.LLC||Savings|
|Monthly Mortgage at 3% Interest||$3,794.44 per month||$3,372.83 per month||$421.61 per month|
|Monthly PMI at 1%||$750 per month||$0 per month||$750 per month till PMI is eliminated|
You could save nearly $196,779 in monthly payments on a $1M home over 30 years. That’s nearly 20%! Plus, you get down side protection because we can share your losses. So it’s totally worth it!
Reach out to our team today to get down payment assistance so you can buy your dream home.