Line Of Credit Home Loans
A line of credit loan is a loan where you have access to a pre-approved amount of credit that you can draw on as needed.
You can pay into and withdraw from this account as long as you keep up with the required repayments. You can have your income paid into this account to help pay off the mortgage sooner, but interest rates are usually higher.
This type of loan can be useful for borrowers who have irregular income or expenses.
Some key benefits of a line of credit loan:
- Flexibility: You can borrow as much or as little as you need, up to your approved limit. This makes it ideal for managing irregular expenses or income.
- Convenience: You can make deposits and withdrawals as needed, similar to a regular bank account.
- Interest Savings: By having your income paid into the account, you can reduce the amount of interest you pay over time.
- Emergency Fund: It provides a safety net for unexpected expenses, giving you peace of mind.
- No Fixed Repayment Schedule: Unlike traditional loans, you don’t have to make fixed monthly payments, as long as you meet the minimum repayment requirements.