Taking Out A Home Loan - What Is A Line Of Credit Loan?
If you’re looking to take out a home loan, there are a number of benefits for shopping around - there are a variety of different types of home loans, each with their own pros and cons.
Having a basic understanding of some of the more common types of loan will help you to make your way successfully into the real estate game.
One of the options available to you is a line of credit loan - but be wary of the ups and downs of this particular loan type. Often lenders will offer a line of credit to customers, which they accept without completely understanding how the concept works.
Acting like a credit card, the line of credit is tied directly to your home loan. You can borrow against your residential property for a set period of time and these loans are generally interest only.
While having a source of funds like this is enticing, it is important to remember the risks associated with credit cards - you can spend funds and pay them back as soon as possible, but making sure you stay within your financial capabilities is paramount.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.