What exactly is a true house equity personal credit line?
A property equity personal credit line, or HELOC, is really a 2nd home loan that provides you with usage of money on the basis of the value of your property. You are able to draw from a true house equity credit line and repay all or a number of it month-to-month, notably like a charge card.
Having a HELOC, you borrow secured on your equity, which will be the home’s value without the amount you borrowed from in the main home loan. This implies:
- You can lose the house to foreclosure because you use the home as collateral if you don’t make the payments.
- You ‘must’ have lots of equity to have a HELOC. [Read more…]