Home Equity Lines of Credit - Not Just Another Credit Card

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Home Equity Lines of Credit - Not Just Another Credit Card
(presented by www.refinance-refinance.net - mortgage lenders)

By L. Sampson

A home equity line of credit (HELOC) and a credit card have many commonalities. Both enable you to draw and payback amounts as you wish while working under a predetermined limit, both have variable rates but taking out a HELOC has its pluses. Because it takes more time to get a HELOC, many choose to go the faster route and get a credit card not realizing the benefits that a HELOC can provide.

Unless your credit is outstanding, a credit card often attaches a very high amount of interest to your balance per month. A HELOC is a great way to get the money you need to use at your disposal without paying an outrageous interest rate. As an added extra the interest that you do pay on the HELOC within each year is deductible when you file your taxes. No credit card can give you that.

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The amount of equity you have in your home is also not dependant on your credit score where the limit on your credit card is. This means you usually get a higher amount available to you when you take out the HELOC vs. a standard credit card. So with all the benefits on the table what could be the drawback to taking out a HELOC? Well the fact that the HELOC is secured by your home is a big one to some. Many people don

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This entry was posted on Wednesday, July 26th, 2006 at 3:54 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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