Why Secure a Home Equity Line?

A Home Equity Line is a revolving line of credit secured by the equity in your home.  Primarily a second lien position many consumers use these programs to consolidate credit card debt and make home improvements.

 

However, did you know.... Home Equity Loans are vastly different than Home Equity lines.  They usually include a fixed rate which is higher than the prime rate or first mortgage rates and require the borrower to take all the proceeds at the time of closing therefore interest is accrued from the moment you sign the note - not when you start using the money.  Additionally, you will not be able to re-draw.  Most consumers take a Home Equity Line of Credit.