A home equity line of credit is a revolving line of credit that you can utilize when needed. With a home equity line of credit, payments are made only on the money that is used. If you never use the money, you will never have any payments.
Revolving Lines of Credit
Many people take advantage of the flexibility that credit cards and other revolving lines of credit can provide. While these funding options can come in very handy when you need instant cash, they typically come with high interest rates that can leave you paying for your charges for many years to come.
Home Equity Lines of Credit
Though home equity lines of credit are similar to credit cards in the fact that they provide a revolving line of credit, home equity credit lines typically come with very low interest rates. And, unlike credit cards, any interest that is paid on a home equity line of credit is normally tax deductible.
Home Loans and Home Equity Lines of Credit
If you are in the process of purchasing a new home loan, or if you are refinancing your current loan, you may want to consider applying for a home equity line of credit at the same time. A line of credit can help you avoid using costly credit cards for home improvement repairs, regular maintenance, and emergency expenses. It can also save you a great deal of time in the future. Once you have applied and been approved for the line of credit, it will always be available to you. And remember, you do not have to pay anything for a home equity line of credit unless the money is used. Here is a list of recommended Home Equity Line of Credit Lenders online. It's important to use a reputable lender online to make sure your personal information is secure.
If you may be Buying or Financing a Home in the near future, check out the lists of lenders on ABC Loan Guide. They also have helpful information about Refinancing and a Home Equity Line of Credit.
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