Home Equity Line of Credit Here's information for you on Home Equity Line of Credit; what it is, how it works, and more. A Home Equity Line of Credit is a kind of revolving credit (like using a credit card) in which your home is used as collateral. Because of the collateral it's considered a second mortgage, providing you with a credit line that you can borrow against at any time within a set time limit (draw period) and up to a certain (maximum) amount. You maximum credit line amount - how much you can borrow - depends on a number of factors. In most cases it's determined by taking a percentage of your home's fair market value, and subtracting the balances of any outstanding mortgages on the property. Existing mortgages plus requested credit line amount can add up to 80% and in many cases even more, of your home's appraised value. In most cases home equity lines of credit don't require a full appraisal. The appraisal process might be completed electronically. You may also use a property, that you don't occupy, as collateral if the property's total existing mortgages and your requested home equity line of credit add up to no more than approx. 70% of the appraised value. The draw period is the time during which you are allowed to use the credit available on your home equity line. Borrowing funds from your line of credit is referred to as a draw. Mostly the minimum initial draw amount on a home equity line of credit might be $20,000. Subsequent draws mostly have a minimum of $500 and can be used as you wish. You can access your line of credit after receiving a package that contains both payment information and checks. There's a monthly billing on your home equity line of credit as long as there is an outstanding balance. Minimum payment terms for you home equity line of credit can be 1 month's interest, plus any assessed fees, or a fixed amount, say $100. You may have tax benefits as in most cases the interest on your home equity line of credit is deductible as long as your home equity debt is $100,000 or less and the total debt on your home is less than or equal to your home's appraised value. Any mortgage debt above the appraised value may not be tax deductible. Top of this home equity line of credit page.   For information on home equity loans (or 'lanes' as used by alot of people) you can follow this Here's more on Loans/Lanes of Home Equity link to the info page. For thoughts about home equity loanes / loans you can visit this Home Equity loans / Loanes page. Here's more on a home equity loan.   You may go to E-Loan for your Home Equity Line of Credit. They now work together with RE/MAX Regional Services If you want to know more about debt consolidation then follow this Consolidation of Debts info page. Top of this equity line of credit page.

 

Other Home Equity Issues besides line of credit