| What is a Home Equity Line of Credit? | | | | properties, and even college tuition can be paid for |
| But what about those homeowners that plan on | | | | with a HELOC. And if you itemize your personal |
| staying put for a while, or who have just | | | | income taxes, the interest is usually tax deductible! |
| purchased their dream home with no intention of | | | | No Fee or Low Fee Home Equity Line of Credit |
| leaving? | | | | All right. You're interested, but you really could do |
| The answer is simple. Put your home to work for | | | | without all of the fees associated with a new loan. |
| you today with a home equity line of credit, or | | | | Well you're in luck. Many times, a home equity line |
| HELOC, as they are called in the mortgage | | | | of credit carries few, if any, closing costs such as |
| industry. | | | | title insurance, settlement fees, attorney fees, |
| Benefits of a Home Equity Line of Credit | | | | etc. This makes the loan very appealing to |
| Since home values have risen so dramatically, | | | | cost-conscious borrowers hoping to gain a financial |
| many home owners have twenty, thirty or even | | | | edge in life. |
| forty percent equity in their home, even if they | | | | Additionally, many HELOC's have an interest-only |
| only put down 5% a year or so ago. Unless they | | | | feature for the first few years, making the |
| plan on selling today, that equity is doing nothing. | | | | payments less than a regular loan. This often |
| It's kind of like putting all of your money into a | | | | makes out of reach items reachable, and is very |
| checking account at zero percent interest or your | | | | appealing to people that know they are going to |
| child's college savings account is a hole in the | | | | receive a bonus or pay increase in the future. |
| backyard. | | | | By recognizing the power of equity, you truly can |
| That's where a HELOC comes into play. Large | | | | call your home a "home, sweet home. |
| purchases, such as automobiles, investment | | | | |