How Does A LOC Work?
Line Of Credit Savings
A Line of Credit may not be suitable for individuals that are unable to control their spending. On the converse, a LOC Account (Line of Credit) for the astute borrower can be a very powerful financial tool. A LOC Account is generally what is termed "Evergreen" which means it is interest only but if operated effectively, you can bring down your Home Loan balance dramatically. The only effective way to bring down you home loan quickly is by making additional loan payments.
Line Of Credit Loans are available to Home Purchase, Refinance, and Low Doc Loans.