LINE OF CREDIT
A Home Equity Line of Credit is a form of revolving credit in which your home serves as collateral. Because the home is likely to be a consumer's largest asset, many homeowners use their Credit Lines only for major items such as education, home improvements, or medical bills and not for day-to-day expenses.
With a Home Equity Line, you will be approved for a specific amount of credit—Your Line of Credit the maximum amount you may borrow at any one time under the plan. Many lenders set the credit limit on a Home Equity Line by taking a percentage (say, 75 percent) of the home's appraised value and subtracting from that the balance owed on the existing mortgage. For example:
Home Valued at: $400,000
75% Loan to Value: $300,000 ..... (Line of Credit starts at)
Less existing mortgage and possibly any other debts to be paid to zero [credit cards, etc]
as a Refinance this rule applies, $200,00 _______ this will leave your access to $100,00
As a Purchase, the Mortgage /Line Of Credit will be based on the Purchase Amount AND 75% Loan to Value will be from that value.
The Line of Credit will have a set of special cheques for this account for you to access the funds when need be. You will only be making payments on what is used. If you take the example above for instance: Let us say that for the first year you do not access the $100,000 and you have only been advanced the $200,000 at the time of closing. The interest charged and payments are all based on the $200,000. Then let us say that in the second year you decide to renovate and take a nice trip and you draw out the balance and max the Line of Credit to $300,000. Then your payments will now be based on the whole amount. Your minimum payment is again interest only. Here a few examples:
All payments below are based on the Prime Rate of 4.75%, 25 year Amortization and Monthly payments
| Interest Only at $300,000 | minimum payment $1,175.92 |
| Interest Only at $250,000 | minimum payment $ 979.93 |
| Interest Only at $200,000 | minimum payment $ 783.94 |
The Line of Credit is Re-Advancable at anytime the Principle is paid down. Take the following for example:
Line of Credit Balance is $300,000
And over the next few years your investments pay back a great return and you have $150,000 available in cash. You can apply all the funds to the Line of Credit and reduce the balance to $150,000.
There are no fees or penalties to do this. You can then sit and take your time and wait for the next right investment. When that time comes you can then write a cheque for the funds needed LESS the current balance. It will become a great tool to use in the investment world.
We are able to qualify our clients with no Proof of Income, Self Employed, Salaried, Business For Self and at times some rentals.
If you have any further questions, please feel free to call me at anytime.
Steven Faux
TD Economics Report For July
Steve's Rates
| 1 Year Closed | 5.05% | 6.65% |
| 2 Year Closed | 5.50% | 6.65% |
| 3 Year Closed | 5.50% | 6.65% |
| 4 Year Closed | 5.75% | 6.99% |
| 5 Year Closed | 5.19% | 6.09% |
| 7 Year Closed | 5.99% | 6.15% |
| 10 Year Closed | 5.99% | 7.75% |
| 15 Year Closed | 6.55% | 0.00% |
| 18 Year Closed | 6.55% | 0.00% |
| 25 Year Closed | 6.65% | 8.65% |
Rates are subject to constant change, for the best rates call 1-866-993-8787.
Resources
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John Ferrier Head Teaching Professional
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#320 - 1405 Stevens Road, Kelowna, BC.
Tel: 250-769-0339
Email: kelowna@urbanlinks.net
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1783 Ross Road on the Westside
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www.TwiceTheFunGames.com
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PH: 250-769-7250
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2-2429 Dobbin Rd. Westbank, BC V4T 2L4
Ph. (250) 768-4546 Cell (250) 869-9636
Fax (250) 768-9005 Toll Free (866) 768-4546
Email jocko.toic@investorsgroup.com
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Ask for Lisa Thomas lisa@renascencedevelopments.com
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The determination to win is the better part of winning.
Daisaku Ikeda
Contact
At Prolink Mortgage Inc., I have over 30 lending financial mortgage institutions in Canada with Steve Faux sourcing the best rates and the best products to suit your needs!
Direct Line — 250.768.0535
Direct Fax — 250.768.0510
Email — steve@yourmortgages.ca
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