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Home Equity Line of CreditA home equity line of credit is another way of borrowing money using your property as collateral. Instead of getting the money in one lump sum, however, it is a revolving line of credit.This works very much like a credit card. You will have a credit limit and you can spend money up to this limit using either a card or checks. Initially you will have minimum monthly payments, just like with a credit card. Home equity lines of credit will have an initial period for you to withdraw money - this is known as the draw period. After the draw period there will be the repayment period where you can no longer withdraw money and the monthly payments will begin paying off the principal of the loan. Home Equity Line of Credit Interest RatesThe interest rate on home equity lines of credit will be variable. This means that it can go both up and down, potentially making you better or worse off. Many loan companies may put a cap on the interest rate so it can't go over a certain figure.Home equity lines of credit are generally recommended if you will have on going expenses to pay for with the loan. If you are borrowing for a one off expense you may be better with a traditional home equity loan. Get a quote for a Home equity line of credit now. Look at our Online Home Equity Loan Quote page for the best sites for getting a quote online. |
