A home equity line of credit (HELOC) is a loan that generally requires your home to be used as collateral. A HELOC usually provides a large amount of available cash at the onset of your loan, with a low interest rate. These loans also may qualify you for tax breaks. You tax advisor can confirm whether or not you qualify.
Home equity lines are a common alternative to second mortgages or mortgage refinancing. If a second mortgage is not for you, or if you are unable to lower your interest rate through refinancing, this may be your best option. Once you receive your home equity line of credit, you are free to use the money however you wish: debts, home repairs, college expenses, medical bills, etc...
You may be wondering if a home equity line of credit would benefit you more than a home equity loan. A home equity line of credit would give you a maximum loan amount equal to the equity of your home, but you don't have to spend the entire loan. You will only be responsible for repayment of the amount you actually spent plus interest on that amount. With a home equity loan, you may end up spending more than you need to because your loan is for more than you need. A home equity loan will give you the full amount of your home's equity in one lump sum. Regardless of whether you spend all or barely any of the home equity loan, you will owe interest on the entire loan amount. If you're still not sure, get more home equity loan info here.
To start your home equity line quote, please follow the link provided below into our secure online loan form.
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