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Answered 2007-01-24 22:08:27
Both are often used. You do want to be sure that if it is being secured with a home that the interest on the loan is tax deductable.
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Related Questions
What happens when paying off an equity line of credit?
Nothing happens when you pay of an equity line of credit. The equity that you used for your line of credit is now safe.
What is equity line of credit?
An equity line of credit is issued based on the amount of equity you have in your home. If you have a $100,000 house and owe $75,000 then you would have $25,000 in equity.
Which is better a line of credit or a home equity loan?
Which is better will depend on the customer and their financial situation. A home equity loan is usually better for those with a specific, short-term project with a defined cost. A line of credit may be better for those with multiple projects and unknown costs.
Why would someone need an equity line of credit?
Equity line of credit is typically used in reference to a home loan. The amount of money paid into your home is your equity. With a home equity line of credit, it acts like a credit card. One may need it if they can not qualify for a credit card, or a higher credit limit on their cards.
Who do i get my home equity line of credit from and what does home equity line of credit mean?
A Home Equity Line Of Credit (HELOC) is generally granted by a bank or credit union. Equity is the amount of your home that you actually own. For example, if your home is worth $100,000 and you have paid $20,000 in principal, your equity is $20,000. A loan can be made using this equity as collateral. A line of credit for this amount basically means you will be given a checkbook that draws upon the loan.
What is the home equity loan and line of credit?
The home equity loan is a way to release the equity of your home in order to borrow money. A line of credit is a phrase used for a method of obtaining credit.
Are there restrictions for getting a home equity line of credit if you own a condo?
Your mortgage lender who is offering you an equity line of credit can answer your question.
How is the credit line priced for a home equity line?
The most informative online resource for information on a credit line for a home equity line is from United States government. http://www.federalreserve.gov/pubs/equity/equity_english.htm
Where can one get details about an Orange Home Equity loan?
The home equity is a line of credit, a loan, or both. It starts with a home equity line of credit which is a form of revolving credit with a variable interest rate.
Where can I get the best advice of having an Equity Line of Credit ?
You could apply for an Equity Line of Credit, so long as you know what you're doing. I know of a few friends whom applied for an Equity Line of Credit, and I can give you their numbers for information from them.
Can someone who is on the home deed but not on the mortgage get a home equity line of credit?
The persons who are on title must both sign for a equity line of credit.
How can one acquire a home equity line of credit loan?
To apply for a home equity line of credit, one should contact the institution they do their banking from. This way, there is already a business relationship established. The line of credit will vary based on credit score and how much equity is owned.
Can you apple for a Home Equity Line of Credit at Tri Counties bank?
Yes you can apply for a Home Equity Line of Credit at a Tri County Bank. You can apply for a Home Equity Line of Credit at any bank of your choosing. Hopefully you have a bank near you.
How does one apply for a Chase home equity line of credit?
One may apply for a Chase home equity line of credit loan via the Chase credit website. A Chase home equity line of credit allows one to use their home as collateral for a variable-rate line of credit that can be used for a variety of purposes.
Can you get an equity line of credit on an owner-carry home?
I presume owner carry homes are kind of apartments so you can get equity line of credit .
Is obtaining either a home equity loan or a home equity line of credit based on your credit score?
I cannot think of any time when borrowing money that credit is not a considerable factor. So, yes, your credit score is a factor when borrowing money for either a home equity loan or a home equity line of credit.
Is Heloc a loan company?
No. HELOC stands for Home Equity Line of Credit. It`s like a reverse mortgage. A home equity line of credit allows you to borrow against the equity in your home.
What is the difference between home equity line loans and line of credit loans?
A home equity loan is a one time mortgage made against the equity of your property. On the other hand, a line of credit loan is not really a loan but is a line of credit you can access anytime within a set time period.
Home Equity Lines of Credit?
In addition to home equity loans, it is now possible to obtain home equity lines of credit that allow you to borrow only the amount you need at any given time, even though you have access to an amount similar to that of a home equity loan. A home equity line of credit is similar to a credit card in terms of how it is used, except that the credit limit is backed by and based upon the equity value of your home. It is even possible to apply for a home equity line of credit from online lenders.
What is the dollar amount limit you can access on a home equity line of credit?
amount depends on your credit score and the amount of equity you have in your home.
What is the difference between Home equity loan and a line of credit?
The difference between a home equity loan and a line of credit is that a home equity loan is money that is borrowed against the equitable value of a home, whereas a line of credit is a loan that can used for anything and is not borrowed against the value of a home.
What if you default on a home equity line of credit?
A home equity line of credit is a mortgage. If you default the lender will foreclose and take possession of the property by the foreclosure procedure used in your state.
What is the difference between refinance and line of credit?
There are a few differences between refinancing and a home equity line of credit. One difference is that the interest rate on a refinanced mortgage is generally lower than the interest on a home equity line of credit.
How does one get rid of a bad line of credit using home equity?
A home equity line of credit is kind of like borrowing from a credit card company only instead it is borrowing from the available equity from your home. Home equity helps consolidate higher-interest rate debt on other loans.
Home Equity Line of Credit Calculator?
Home Equity Line of Credit Calculator Use this calculator to determine the home equity line of credit amount you may qualify to receive. The line of credit is based on a percentage of the value of your home. The more your home is worth, the larger the line of credit. Of course, the final line of credit you receive will take into account any outstanding mortgages you might have. This includes first mortgages, second mortgages and any other debt you have secured by your home.
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