How Does a HELOC Loan Work?

At some point in our lives we might need a large credit that has to cover all of our expenses. And while a mortgage can bring some large interest rates, finding an alternative is surely much more beneficial.

One of the best ways to get a large sum of money fast is by getting a home equity line of credit. This is basically a loan where the lender agrees to lend the amount of money requested by the person contracting it as long as they offer collateral.  Most of the time this collateral will be the borrower’s home.

What is a HELOC Loan

The  home equity line of credit is different from the conventional loans because the borrower doesn’t receive all the money at once, instead he uses a line of credit in which he can borrow sums that total no more than the credit limit. This makes the home equity line of credit very similar to the functionality of a credit card. The repayment is made like in the case of any other credit, and that means paying back the loaned amount plus the interest rate.

Sometimes the  home equity line of credit can have a minimum monthly payment, but this can vary quite a lot depending on various criteria.

Another difference from a normal loan is that the interest rate in a  home equity line of credit is variable and it’s most of the time based on an index, also known as the prime rate. This rate can change over time, and it’s really important to consult your loaner before contracting such a credit.

What’s really important to know is that you can actually access up to 65% of the total home value through such a credit. Determining how much equity is at your disposal is quite easy, you just need to determine the value of your house then you multiply it by 80%. You then need to subtract the balance of your mortgage, and the remaining figure is what you can access through such  a credit.

As you already know, the funds from a home equity line of credit are not received upfront and you will pay interest only on the money that you withdraw. This is great if you want to withdraw money periodically as it allows you to pay the money back a lot easier, which is always great.


Paying the money back involves making monthly payments until all the credit has been returned. In order to pay all the balance you need to be very disciplined, especially if you loan a large sum of money. What’s really important is that you don’t need to break your existing mortgage when considering a home equity line of credit. You won’t have to pay a mortgage penalty, which is really amazing. This type of credit is surely recommended for people that want to take a refinance or other credit. It’s really easy to take one and paying the money back is not that hard to do, so it’s surely a recommended type of credit.

raving fans-business

How To Create Brand Advocates For Your Business [infographic]

Every business wants customers.  But more than that, ever business dreams of turning their customers into raving brand advocates.

A customer is someone who likes your business and is willing to pay for your products or services.  A brand advocate on the other had is someone who not only buys from you, but will tell others about what a great business you have going on.

Have brand advocates on your list of customers is like having a mini sales force helping to promote your business and build your brand.

Brand Advocates share and promote a business twice as much as a regular customer.  They go out of their way to make sure their friends and peers know about what a good choice they made in doing business with you.  And I think that’s the key, they are promoting your business for themselves, because it makes them feel good knowing they are sharing their “secret”, your business, with others.

The best way to find brand advocates for your business is to listen to your existing customers.  Find out who are the raving fans and who openly promotes your business within their circle.  Once you’ve identified these people, reach out to them and enlist them to help promote your brand.

Their are many ways to do this, you can offer exclusive discounts or access to products that have not been listed for sale yet.  You can invite them to special, member only events where they get to see the inside workings of your business.  The key is to make them feel special, like they are in an exclusive club that you invited them to.

Below is a nice infographic from BzzAgent that gives some good insights as to what it takes to find and recruit brand advocates for your business.