An equity line of credit, abbreviated as ELOC, is defined as the combination of a line of credit and an equity loan. This type of credit allows the user to fulfill his or her dreams however he deems fit. To be more precise, it establishes a maximum loan amount based on credit and equity. The term equity refers to the difference between total assets and total liabilities. This loan permits the borrower to take as much money needed without re-applying each time. The only requirement is that the total amount of borrowed funds should not exceed the credit limit. Borrowing is an easy process like writing a check and the borrower gets the money when it is needed.Money is borrowed in a lump sum, and it is paid back over a period of years with interest. The interest rate varies from one to another. Compared with other types of consumer loans, the interest rate is relatively low for ELOC and is tied to prime rate. It is a smarter way to borrow than any other methods of borrowing.Home Equity Line of Credit, Commercial Equity Line of Credit, and Best Home Equity Line of Credit are some of the different ELOC lenders. An Equity Line of Credit loan is a perfect choice for anyone whose home is not mortgaged. There are also World loan customers who can obtain an equity line of credit over 30-years and convert the equity in their home to cash. Equity Credit Lines are available in most states.
