Quick Summary: A HELOC (home equity line of credit) is a revolving line backed by the equity in your home or an investment property. You draw what you need during the draw period and pay interest on what you use. Lexington Capital's general guidelines are a 650 credit score and available equity in the property. Because your home is the collateral, borrow only what you can comfortably repay, even if the payment goes up.
If your home is worth more than you owe on it, that difference is your equity. For many New Jersey families, it's the biggest thing they own. A HELOC lets you use part of it without selling the house or changing your first mortgage.
How a HELOC Works
A HELOC works like a line of credit, with your property behind it:
- You're approved for a limit based on your equity.
- During the draw period, you take what you need and pay interest on what you use.
- When the draw period ends, the repayment period begins, and payments usually go up.
It works on the home you live in or on an investment property. People use it for repairs and updates, to pay off higher-cost debt, or toward the down payment on their next property.
What Lexington Capital Generally Looks For
Under Lexington's general guidelines, which can change:
- A credit score of 650 or higher.
- Available equity in the property.
- Your home or an investment property.
Lexington reviews each application on its own numbers.
Rosa and Miguel have lived in their Linden home for nineteen years. The roof needs replacing, and they have two credit cards they'd like to stop carrying. A HELOC could cover the roof and pay off the cards, with one payment they plan for, instead of three. They decided to borrow only for the roof and the cards, not for a vacation. (This is an illustration, not a real client.)
Kevin helps you get ready and submits the application. Lexington Capital makes the decision.
Three Things to Know First
- Your home is the collateral. If you can't make the payments, your home is at risk. That's the most important sentence in this guide.
- The payment can change. HELOC rates are often variable. Plan for a payment higher than the one you start with.
- The repayment period comes. When the draw period ends, you start paying back the principal too, so payments typically rise.
That's why a HELOC is best used for things that improve your situation, like a needed repair or paying off costlier debt, and not for everyday expenses.
Note: Financing is provided by Lexington Capital, not by Kevin Gaviria or Gaviria Life Insurance Solutions. Kevin is a referral partner of Lexington Capital, not a lender, and may receive a referral fee. Lexington Capital reviews every application and makes all credit decisions. Not every applicant is approved.
Protecting the House That Backs the Loan
When a home secures a loan, it's worth asking who would keep up the payments if something happened to you. That's where Kevin's life insurance work comes in. It's optional, and nothing about your application depends on it.
When it's time to apply, Kevin sends you a private upload link for your documents. Please don't text or email bank statements, tax returns or credit reports.
A Simple Next Step
Take the 2-minute program check and choose the property option, or see what a HELOC takes. You can also call or text Kevin at (848) 212-8787.
FAQs: HELOCs
Yes. A HELOC works on your home or on an investment property.
Lexington's general guideline is 650 or higher, plus available equity in the property.
A HELOC is a line you draw on and leaves your first mortgage alone. A cash-out refinance replaces the mortgage on an investment property and pays out equity at closing.
Often, yes. Rates are usually variable, and payments typically rise when the repayment period begins.
Your home is the collateral. Borrow only what you can comfortably repay.