This animation helps viewers understand the anatomy of a Home Equity Line of Credit, or a HELOC. It talks about what HELOCs are, how they can benefit you, and potential risks they carry.
An illustration of a small plane flies across the screen as the title is revealed - "The Anatomy of Home Equity Lines of Credit."
You hear a lot about home equity lines of credit. But what are they? And how can they help you?
A car pulls up to a house as text on screen, "A good credit score," appears above the home and "At least 20% equity in your home" appears below.
A home equity line of credit, or a HELOC, lets you borrow money against your existing home. Generally, you need to have a good credit score and at least 20% equity in your home in order to qualify.
How it Works.
Text on screen appears in a night sky. then text appears above a telephone wire that reads "Draw Period - Up to 10 Years."
A HELOC has two stages:
Up to a 10 year draw period to access the funds...
More text appears, this time reading "Repayment Period - 20 Year." The camera shifts away from the night sky back to the house as the sun comes up. A new title reads "Principle and Interest."
—and then a 20 year repayment period. You'll pay monthly principle and interest payment on the outstanding balance during both phases.
A brand new kitchen appears on screen. Graduation caps are thrown through the air in celebration. The caps transform into credit cards.
Access to your HELOC is convenient. It can be used for home improvements, funding a college education, or consolidating debt.
A stoplight appears, turns green, and traffic starts to move. There's a cityscape behind the traffic and above it data appears to illustrate variable rates.
Like any lending tool, there are factors to consider; Such as variable rates. Meaning your rate could go up or down throughout the life of the loan.
The car from the first scene pulls up in front of the house. The camera lifts to the sky and the little plane that first introduced the video writes "HELOC" in the sky.
But if you manage these risks, a HELOC can help to make your plans a reality.
All home lending products are subject to credit and property approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all amounts. Other restrictions and limitations apply. Home lending products offer by JPMorgan Chase bank NA copyright 2017 JPMorgan Chase & Co.