Home Equity Lines Of Credit

Home Equity Lines Of Credit (HELOC)

Home equity lines of credit (HELOC) are like a home equity loan - a second mortgage - in that you are borrowing money against your home equity, or the amount of your loan you have already repaid. But while home equity loans are one time loans, a single check and a repayment schedule, with home equity lines of credit you decide how much you want to borrow and when, and usually are prevented from borrowing more until the first HELOC is completely repaid. A home equity line of credit works much like a credit card, except you reach your credit limit all at once and must repay it - at low interest rates - before you can borrow again. In certain instances your home equity lines will be open-ended, meaning they will not have to be repaid for as long as you own your home. Home equity lines of credit are a great tool for your financial demands, and a possibility for your home-owning successes.

Holy home equity lines of credit!

Due to the competition for your loan and continual falling interest rates, now is perhaps the best time ever to take out home equity lines of credit, By borrowing against the equity you have already paid, you are assured lower rates than your primary mortgage offered. Decreasing home equity rates only lessens the amount you have to pay back on your loan. You can use your home equity lines of credit to finance continuous credit demands:

• pay off your education loans before they build up
• keep current long-running medical bills, or
• use the money for necessary, or even unnecessary, home improvements or upgrades to your house.

The reality is you can use your line of credit for anything, but prudent spending saves you money and financial headaches in the long run. And although rates are very, very low right now, it is important to know there is a low limit - called rate floors- that your home equity rate will possibly reach. Once there the rates can only go up. Before that happens, take advantage of low rates and competition and take out home equity lines of credit. You will be surprised at the benefits home equity can bring.

Home-equity-lines-of-credit history

It's interesting to note that as late as the late 1990's, home equity rates we're averaging between 9 and 10%. Today's rates are much, much lower, about 7%, and are a benefit of a depressed economy. It's a sad predicament, but the worse our national economy performs, the greater rates you have on all aspects of your home mortgages. Just look at the history of countrywide home equity lines and their attached rates. Countrywide is known for its stability - but that stability is always in question when it comes to rates.

About Us | Contact Us | Site Map | What's New | View as RSS