Home Equity Line of Credit Pro and Cons

Must Read

Black Friday – Humans Behaving Badly

We are the most compassionate country on the face of this planet. There are those who would think that...

100% Home Mortgage Refinance – Choose a Lender Online

100% home mortgage refinance frees up your money for other purchases, like a second home, renovations, or debt consolidation....

Free Government Debt Consolidation Loans – Can Obama’s Federal Bailout Stimulus Programs Help Me?

Nowadays, an innumerable amount of Americans use their credit cards to make their daily purchases and as a result,...

Home equity line of credit pro and cons are important if you decide to tap your equity in your home. Whether you are choosing a home equity loan vs equity line of credit, each loan is considered a second loan and is secured by your home.Here are some home equity line of credit pro and cons to make your choice a little easier.Pros:Most home equity lines of credit have little or no closing costs.You only need to make interest only mortgage loan payments which means lower monthly mortgage payments than with a fixed interest rate loan.Variable mortgage interest rates are usually much lower starting rates than with fixed interest rate loans.You can use the loan to draw on only as you need the money. You only pay interest on the money used not on the entire loan amount.You can use the remaining unused balance of the equity line as an emergency fund.Cons:Variable mortgage interest rates are not stable and could go higher than a fixed interest rate loan.Monthly mortgage payments are not level and can fluctuate a great deal.Most home equity lines of credit have yearly fees paid to the lender.With equity rates rising quickly it’s easy to spend your all of your home equity.It makes sense to use the equity in your home to pay down debt, or pay credit cards off. But use the money wisely and only use as little equity as you have to.Hopefully these home equity line of credit pro and cons will make your choice of equity loans easier for you.Copyright © 2005 Credit Repair All Rights Reserved.


Please enter your comment!
Please enter your name here

Latest News

Top 10 Provinces of Thailand Not to be missed for Travel

10 SuratthaniThe source of the proverbial Chaiya salted egg. Surat Thani is a province with many attractions,...

Underlight As Accent, For Power and The Main Light for Photography

Underlighting, in which fill or accent light comes from under the topic, is not widely used technique in the traditional Portraits, even though it will have...

How To Fix Overexposure As A Creative Tool, The Complete Guide

As an creative tool, overexposure is sort of underrated. What I’m close to propose could be a deliberate and well thought out technique for...

7D Mark II is Canon’s best DSLR cameras without full-frame sensor.

The expected long-awaited Canon EOS 7D Mark II are shipping in November for $ 1,799 without a lens. With a higher price tag, you...

Low key photography and How to isolate your subject.

Low key photography doesn’t depend on underexposure to make its point; the key to low key is that the majority of tones, even correctly...

More Articles Like This