WIRE FRAUD AND BUSINESS IDENTITY THEFT ALERT. Criminals are hacking email accounts and creating email accounts that look legitimate in an effort to extract funds from unsuspecting individuals. The emails look legitimate but are not. The criminals may impersonate a member of our staff for wire fraud or for an advance fee for loan scam. You can confirm you’re working with a Bayway team member by calling 904-224-2350.

apply-now upload-now      1-855-399-0644 support@baywaymortgage.com      NMLS # 1057426

Use Home Equity to Establish Credit

A Home Equity Line of Credit (HELOC) is a type of second mortgage that is actually a revolving credit line similar to that of a credit card. Because HELOCs are secured by your home, they commonly offer high credit limits, lower interest rates and the interest is tax deductible.

Why HELOC:
HELOC Benefits

  • Tax deductible
  • One set amount available to you
  • Determine how much you need and when you need it

 

piggy-bankHELOC Requirements

  • Must meet the required credit ratings
  • Must meet the required debt-to-income ratio
  • Must have equity in the subject property

 

How HELOC Works

Lenders set the HELOC limits and then award the loan. Afterwards, the loan enters the draw period.

  • The draw period can be a span for 5 to 20 years depending upon which program they fit into
  • The borrower will receive a check book and a special credit card that is used for withdraws
  • When the money is taken out the borrower will receive a monthly bill and must make a minimum payment (sometime interest only)
  • When no money has been taken out there will be no money owed

At the end of the draw period which is usually 10-20 years, it will enter in a stage of the loan called “repayment period.” This is when the borrower cannot withdraw from the loan any longer and will receive a fixed payment schedule for repayment.