What is a home equity line of credit? Do you recommend getting one? Are rates higher than a primary mortgage?

Comments

1. moonage says:

   February 17, 2010 at 6:28 am

   a heloc is a second mortage for all practical purposes without going thru too much paperwork . all the bank needs is an appraisal . then they will lend you the difference between 80 % of the appraised valu and the current mort. ie. 100,000. appraisal , 80 % of that less current mort , gives you your max loan . you will pay a little more but no closing costs
2. Shanan D says:

   February 17, 2010 at 7:24 am

   I do not recommend getting a home equity line of credit. The rates usually are higher, depending on what your rate is on the primary mortgage.
   You have to ask yourself why do you want to get a home equity line of credit. Is it to pay off credit cards,etc. Once those are paid, are you going to get rid of them, or start spending again? You will then be in the same boat you were originally in, but worse.
3. K M says:

   February 17, 2010 at 8:03 am

   You can get a regular home equity loan or a home equity line of credit. The home equity loan is really just like a standard loan, athough there may be different qualifications for it. The home equity line of credit is actually an approval up to a certain amount, and you can withdraw it if and when you need it, almost like a credit card.

   As for recommending it, it really depends on what you want it for. If you are financially responsible and can limit yourself, then it’s fine. If you are the type of person that has difficulty controlling their spending, it can sometimes be too tempting and the expenses can add up quickly.

   If you’re interested in it, you can easily find a lot of information online or talk to a bank or loan officer that you’re comfortable with and they can help you out.

   Best wishes.