|
|
Open End Home Equity LoanThe open end home equity loan is also addressed as a home equity line of credit. The open end home equity loan is a revolving credit loan. The borrowers are free to choose when and how often they should borrow against the equity in the property. Although the lender will set an initial limit to the credit line based on the criterion similar to that of closed-end equity loans. Similarly, in open end home equity loan, the borrower can borrow the entire 100% of the evaluated value of the home, less any liens. These open-end home loans are available for 30 years, generally at a variable interest rate. The interest rate is based on the Prime rate plus a margin. Due to this, the minimum monthly payment can be as low as only the interest, which is owed.
|
|
|