Line of Credit Loans
Line of Credit Loan
A line of credit or otherwise known as an equity loan or a reverse mortgage is generally an interest-only loan with no set period for the balance to be repaid by. It is basically an overdraft facility that is secured against your existing property, where interest is charged only on what you have used and is charged to your account on a monthly basis.
The majority of lenders permit you to make additional repayments, which you can redraw on as required provided there is sufficient credit available.
In addition to low interest rate, A – one loans offers a range of features that give you flexibility in how you pay off the loan and other features that assist you in reducing the total cost of your loan.
How much you can borrow?
You can borrow up to 80% of the total value of property. You can unlock the money with help of line of credit if your property has gained value.
Flexible repayment options
Line of credit loan allows you to pay only the interest portion of the repayments for as long as the loan stays below the maximum value allowed.
Deposit your salary into the account
Therefore if you have savings or deposit your salary into the account, you can reduce the amount of interest that is charged to the account.
You can split the loan.
Line of Credit loan allows you to split the loan into two separate parts. This allows you to take advantage of two different loan schemes and the features of those loans. Most people opt for a split where one portion is on a fixed rate while the other portion is on a variable rate. This allows you to save money while repayments are reduced during times when the interest rate is lowered, while you are still protected from the full effects of rate rises.
The loan is portable.
Line of Credit loan is fully portable. If you decide to buy another home while you’re still paying off the loan you can move the loan to your new home. This will save you time and allow you to avoid the costs that are associated with applying for a new home.
Why wait for a better way, when you can make it happen today? A – one loan will provide you a smart way to make your plan for line of credit loan a reality.