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.
No. At the same time, the fact that one defaulted on a loan does not mean that they may write off the value of the loan from their taxes. Personal loans, unless specifically tied to a principal residence (e.g., [first] mortgage, home equity loan, home equity line of credit), do not increase or decrease one's taxes.
Yes you do. *Clarification: if you own the home you are owner of any equity that may be realized by the sale or leveraging of the property. That does not mean the home has equity. It only has equity if it is worth more than loans or liens held against it.
Every individual has a line of credit. This line of credit is what determines your credit score and what will be used to approve or deny you credit cards or loans.
I am assuming you mean that you own the house outright. The answer (provided you own the home without a mortgage) is yes. Home equity loans are designed for people who wish to borrow against the equity in the home. Remember, you have to own the home in order to use equity. This means your name has to be on the deed. (See related link below for more information.)
If you mean do you have to pay taxes on the proceeds from the sale of a house which had a HELOC on it, the HELOC would be have to be paid off upon sale of the subject property. You wouldn't have to pay taxes on it since it is an expense, not income.
A dormant account is some sort of account or credit line that is open, but inactive. For instance, I have an equity line of credit with a zero balance. It is dormant.
If your home goes into foreclosure and you have an equity line of credit, the lender who holds the equity line will typically be paid after the primary mortgage lender from the proceeds of the foreclosure sale. If there is not enough money from the sale to cover both loans, the equity line lender may pursue you for the remaining balance. It's important to consult with a legal or financial professional to understand your options in this situation.
A dormant account is some sort of account or credit line that is open, but inactive. For instance, I have an equity line of credit with a zero balance. It is dormant.
No. At the same time, the fact that one defaulted on a loan does not mean that they may write off the value of the loan from their taxes. Personal loans, unless specifically tied to a principal residence (e.g., [first] mortgage, home equity loan, home equity line of credit), do not increase or decrease one's taxes.
Yes you do. *Clarification: if you own the home you are owner of any equity that may be realized by the sale or leveraging of the property. That does not mean the home has equity. It only has equity if it is worth more than loans or liens held against it.
Every individual has a line of credit. This line of credit is what determines your credit score and what will be used to approve or deny you credit cards or loans.
In regards to home ownership and property, equity can be seen as: Home appraisal value (minus) loan amount (equals) Equity amount It is possible to have negative equity, which can happen when a homeowner buys in a rising market, and there is a price correction, reducing the value of the home appraisal. If there is no loan against the home, the equity is equal to the appraised value. Equity can also be viewed as Share.
I am assuming you mean that you own the house outright. The answer (provided you own the home without a mortgage) is yes. Home equity loans are designed for people who wish to borrow against the equity in the home. Remember, you have to own the home in order to use equity. This means your name has to be on the deed. (See related link below for more information.)
Line of Credit
What does this prase mean? I'm Russian speaking and do not understand that phrase comletly Thanks
If you mean do you have to pay taxes on the proceeds from the sale of a house which had a HELOC on it, the HELOC would be have to be paid off upon sale of the subject property. You wouldn't have to pay taxes on it since it is an expense, not income.
Please clarify your question. Do you mean taking out a second mortgage or equity line?