- California Line of Credit
- What you should know about equity lines of credit
- Home Equity Credit Lines
- Boost your Home's Equity with a Mortgage Refinance
- Home equity loan or line of credit
- Refinancing
- 5 ways to tame your line of credit
- Home Mortgage Loans For People With Bad Credit
- Versatility of HELOCs
- Goodbye HELOC, Hello Mortgage Refinance
- How to Convert To a Fixed Rate HELOC
Welcome to HomEquityLineofCredit.org
Home Equity Line Of Credit
HELOC is an abbreviation of Home Equity Line of Credit. This refers to a loan in which the lender agrees to lend a
maximum amount within an agreed period (called a term). This differs from a conventional home equity loan in that
the borrower is not advanced the entire sum up front, but uses the line of credit to borrow sums that total no more
than the amount.
A HELOC in many ways is similar to a credit card. At closing you are assigned a specified credit limit that you can
borrow up to. During a "draw period" (typically 5 to 25 years), HELOC funds can be borrowed "on demand" and you pay
back only what you use plus interest. Depending on how much you use the HELOC, you will have a minimum monthly
payment requirement (often "interest only"); beyond the minimum, it is up to you how much to pay and when to pay.
At the end of the draw period, you will have to pay back the full principal amount borrowed either in a lump-sum
balloon payment or according to a loan amortization schedule.
Another important difference from a conventional loan: the interest rate on a HELOC is variable based on an index
such as prime rate. This means that the interest rate can - and almost certainly will - change over time.
HELOC loans have become very popular in the United States in 2000s, in part because interest paid is typically
(depending on specific circumstances) deductible under federal and many state income tax laws. This effectively
reduces the cost of borrowing funds. Another reason for the popularity of HELOCs is the flexibility not found in
most other loans - both in terms of borrowing "on demand" and repaying on a schedule determined by the borrower.
It must always be kept in mind that the underlying collateral of a home equity line of credit (HELOC) is the home.
This means that failure to repay the loan or meet loan requirements may result in foreclosure.
Surprising Surge in Home Equity Loans
Financial Planning.com - Thu, 02 Jul 2009 11:17:18 GMT
Data suggests that many banks binged on home equity loans last year and began tightening standards only in the second half — after housing prices had already staged a dramatic retreat.
Keep after your home equity line of credit lender when refinancing your mortgage
Los Angeles Times - Sun, 28 Jun 2009 07:02:36 GMT
If your rate-lock period is within two to three weeks of expiring and your subordination request hasn't been approved, call the HELOC lender and ask that it be given top priority. Dear Liz: I'm in a potentially bad situation with my home equity line of credit. I'm trying to refinance my primary mortgage and would save nearly $150 a month. But the HELOC lender is dragging its feet on agreeing to ...
Home Equity Loan Rate Search
Bankrate.com - Fri, 03 Jul 2009 11:39:47 GMT
Here's a look at the state of interest rates on five common consumer banking products and the latest rates from Bankrate.com's weekly national survey of large banks and thrifts conducted June 24, 2009.
Realty Q&A: Using homestead laws to protect you from creditors
Market Watch - Fri, 03 Jul 2009 12:17:52 GMT
A friend of mine asked me about homesteading as a way to keep credit-card companies and other creditors from placing liens against someone's home.
Shop Around for That Refinance, but Don't Delay
Washington Post - Fri, 03 Jul 2009 21:50:42 GMT
QI am shopping to refinance my condominium mortgage of about $400,000. The outstanding loan balance is $160,000, and my credit is stellar. In order to refinance with my current lender, they want $2,200 in closing costs. I just financed with this lender three years ago, and there seems to be no special benefit for refinancing with them again. I don't understand why they wouldn't want to keep a ...
Mortgage repayments soar to £8.1bn
ShareCast via Yahoo! UK & Ireland Finance - Fri, 03 Jul 2009 17:16:00 GMT
Britain's home owners paid off records amounts from their mortgages in the first three months of 2009 as they rushed to take advantage of lower interest rates.
Some banks not with the program
Bucks County Courier Times - Fri, 03 Jul 2009 18:07:06 GMT
Standing in the shady front yard of a comfortable Poplar Avenue home in New Britain Township on Wednesday, Rep. Patrick Murphy said homeowners are getting "a tremendous amount of misinformation" about President Obama's program to help prevent foreclosures.
Banks, defensives push FTSE higher
Tiscali - Fri, 03 Jul 2009 20:19:48 GMT
LONDON (Reuters) - The leading equity index closed marginally higher on Friday as positive financial and defensive stocks outpaced weaker commodity shares, which tracked a decline in crude and metals prices.
Decline in home prices slows
Atlanta Journal-Constitution - Wed, 01 Jul 2009 07:10:21 GMT
Existing home prices continue to fall across the country, but the rate of decline in Atlanta is slower than the national average, according to a widely watched measure.
Canada home prices down 6.7% in April
National Post - Wed, 01 Jul 2009 12:20:50 GMT
Whether the change is measured month-to-month or year-to-year, overall home prices in Canada continue to fall, although two cities are starting to claw their way back, according to a report issued Wednesday.