bloglines.com
Lets you tap home equity without disturbing the main mortgage (nice if you've secured a low rate).

Typically lower upfront expenses than home equity loans.

Lower rate of interest than with credit cards.

Usually low or no closing expenses.

Interest charged just on the amount of money you use.

- Close X Icon Lenders might require minimum draws.

- Close X Icon Rate of interest can change upward or downward.

- Close X Icon Lenders might charge a range of fees, consisting of annual charges, application charges, cancellation charges or early closure fees.

- Close X Icon Late or missed out on payments can harm your credit and put your home at danger.

Alternatives to a HELOC

A HELOC is not the ideal choice for every debtor. Depending upon what you require the cash for, one of these alternative choices might be a much better fit:

HELOC vs. home equity loan

While similar in some methods - they both enable property owners to borrow versus the equity in their homes - HELOCs and home equity loans have a couple of distinct differences. A HELOC functions like a credit card with a revolving credit line and usually has variable rates of interest. A home equity loan functions more like a 2nd mortgage, providing funds upfront in a swelling sum at a fixed rate of interest.

HELOC vs. cash-out refinance

A cash-out re-finance changes your existing home mortgage with a larger mortgage. The distinction in between the original mortgage and the new loan is paid out to you in a lump amount. The main distinction between a cash-out refinance and a HELOC is that a cash-out refinance requires you to replace your existing mortgage, while a HELOC leaves your present mortgage undamaged