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POPULAR PURCHASE PROGRAMS
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HOME EQUITY LINE OF CREDIT
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 Description
A home equity loan is a second mortgage on your home. Home equity loans are a very powerful
tax-deductible financial tool. Since home equity credit is a type of mortgage, it shares lower
interest rates and the tax advantages of mortgages. You can borrow up to $100,000 of your
available home equity for virtually any purpose, and, in most cases, 100% of the interest paid
each year is tax deductible.
When to apply for a home equity loan?
A home equity loan is a serious move because it is a second mortgage on your home. If you are
seeking to pay off credit card bills, car payments, or college tuitions, you have good reasons
to seek a home equity loan. The best part about equity loans is that you can now borrow up to
100% of your home's equity and, in some situations, up to 125%. In the past, equity loans were
usually limited to a total combined Loan-to-Value (LTV) ratio of 80%. For example, if your home
was worth $100,000, the combined total of the first mortgage and the home equity loan (second mortgage)
could not exceed 80% of that value, or $80,000. If the balance on the first mortgage was $60,000,
you could borrow up to $20,000 on a home equity loan. But at Advocate Mortgage Group, we are now
offering loan programs that allow you to borrow up to 125% of your home's equity (value).
Contact us today for more information about this exciting program!
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Advocate Mortgage Group, Inc
16 South Calvert Street, Suite 203
Baltimore, MD 21202
Phone: 410.625.5420
Fax: 410.625.5424
E-Mail:
Copyright © 1997, 1998, 1999, 2000 by Advocate Mortgage Group.
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