What is a Home Equity Line of Credit?

But what about those homeowners that plan on staying put for a while, or who have just purchased their dream home with no intention of leaving?

The answer is simple. Put your home to work for you today with a home equity line of credit, or HELOC, as they are called in the mortgage industry.

Benefits of a Home Equity Line of Credit

Since home values have risen so dramatically, many home owners have twenty, thirty or even forty percent equity in their home, even if they only put down 5% a year or so ago. Unless they plan on selling today, that equity is doing nothing. It's kind of like putting all of your money into a checking account at zero percent interest or your child's college savings account is a hole in the backyard.

That's where a HELOC comes into play. Large purchases, such as automobiles, investment properties, and even college tuition can be paid for with a HELOC. And if you itemize your personal income taxes, the interest is usually tax deductible!

No Fee or Low Fee Home Equity Line of Credit

All right. You're interested, but you really could do without all of the fees associated with a new loan. Well you're in luck. Many times, a home equity line of credit carries few, if any, closing costs such as title insurance, settlement fees, attorney fees, etc. This makes the loan very appealing to cost-conscious borrowers hoping to gain a financial edge in life.

Additionally, many HELOC's have an interest-only feature for the first few years, making the payments less than a regular loan. This often makes out of reach items reachable, and is very appealing to people that know they are going to receive a bonus or pay increase in the future.

By recognizing the power of equity, you truly can call your home a "home, sweet home."

Here are our recommended

Home Equity Lenders Online.

Carrie Reeder is the owner of ABC Loan

Guide, an informational website about various types of loans.

Four Key Benefits Of a Equity Home Loan Mortgage Refinance
When it comes time to remodel your home or pay off excess credit card debt nothing can beat a equity home loan mortgage refinance for getting the cash you need quickly. While you may be looking at a traditional refinance you cover your monetary need...

Home Equity Loans - Benefits of A Home Equity Loan
What is a home equity loan? As you pay your mortgage, your home begins to build equity. The equity of that home is determined subtracting the mortgage balance from the fair market value of the home. Then after determining the equity, you, as the home...

Nebraska Home Equity Loans - Can You Pay Off a Mortgage with a Home Equity Loan?
Home appreciation values in Nebraska have increased by an average of 22.5 percent in the last five years. This means that if your home was worth only $100,000 five years ago, it is now worth $122,500. You've built equity! If you have paid down your m...

Determine if an Equity Home Loan Second Mortgage is Right for You
If you're wondering whether or not you should tap the equity in your home for a loan, you may have discovered that there are a few different ways you can borrow that money. For example, you can borrow it as a home equity line of credit, or HELOC, whi...

Refinancing with a Home Equity Loan
If you have lived in your home for a reasonable amount of time, you may be considering refinancing.Refinancing can be done in a few different ways. One of the most popular recently has been the home equity loan.A home equity loan is a loan used to pa...

Home Equity Loan - What Is It?
If you own a home then you've probably heard the term, home equity loan, or home equity line of credit, but perhaps you really don't understand the meaning. No problem, you are certainly not alone.Financial terms like home equity, second mortgage, or...

A Second Mortgage Vs. A Home Equity Loan
Second Mortgage Tip #1 One Time ExpensesA second mortgage is the preferred option if you have a one time big expense you need to cover. Examples of this include remodeling your kitchen, paying for a wedding, or buying a new car. In these instances a ...

Home Equity Loan: What You Need to Know
The idea of getting a home equity loan while interest rates are low to help you pay off your bills, buy a car, or even pay for your childs education may seem like a great idea. However, you should educate yourself first so you know exactly what a hom...

Fast And Easy Home Equity Loan - Tips For Selecting Fast And Easy Home Equity Loan Companies
Shopping for a fast and easy home equity loan can be confusing and time-consuming. Mortgage packages and mortgage companies vary widely, and it is important to investigate several options to find the one best for you. The following tips will help you...

Cash Out Refinance Mortgage Loans - Home Equity, 2nd Mortgage or Cash Out Refinance Loan
There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. When you do a cash out refinan...