2nd Loan/HELOC plan

[orthoclase]

@Luv2Cruise wrote:

Does the HELOC replace your current Mortgage and payment? Do you have a certain time to pay off what you borrow or is that rolled into your new mortgage that you would pay for 30 years? This is all confusing, thanks.

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A HELOC is a line of credit that is secured by your house. It is effectively a second mortgage on the same property. It would be a separate account from your primary mortgage.

[Luv2Cruise]

Oh ok so in addition to paying on your 1st mortgage you then would have a 2nd one with a diff monthly payment. How long would you have to pay the 2nd mortgage off and how are the payments in comparison to your 1st mortgage? I assume people take a HELOC to pay CC debt from what ive read. Just trying to get some options.

[i4owner]

My HELOC has a 15 year draw period, where I can take draws against the available credit, up to 100% of the credit line.  During that period, I am only required to make monthly interest payments.  At the 15 year mark, I can no longer take draws.  The balance is them amoritized over 15 years, so then I have 15 years to pay off the balance with interest.  

This does not impact my first mortgage at all, I still pay that as normal.  

FYI, I have had my HELOC for 3 years, and NOT taken a draw.  

[Skyrod74]

Congrats on your closing with bcu! We're about to pull the trigger with bcu would love to know if version of FICO TU do they use? Was it mortgage or Fico 8? Thank you