- 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.
Bank offers lure to close its home equity credit lines
Coshocton Tribune - Sat, 06 Sep 2008 12:11:39 GMT
CLEVELAND - National City Corp., which is trying to recover from steep losses in the home mortgage market, is offering a $200 incentive to customers if they voluntarily close equity lines of credit that don't have a balance.
Ohio bank offers lure to close home equity lines
FOX 19 Cincinnati - Fri, 05 Sep 2008 14:30:06 GMT
CLEVELAND (AP) - National City Corp. is offering a $200 incentive so some of its home equity customers will close their credit lines. That strategy appears based on a concern over higher risk due to declining home values.
Bank will allow home-equity line closing
Akron Beacon Journal - Fri, 05 Sep 2008 05:45:35 GMT
Bloomberg News National City Corp., Ohio's largest bank, will let some customers close their untapped home-equity lines of credit, without penalty, to reduce liabilities on its balance sheet.
Ohio bank offers lure to close home equity lines
WKYC Cleveland - Sat, 06 Sep 2008 07:28:30 GMT
CLEVELAND -- A Cleveland-based banking company is offering some customers $200 to close out their equity lines of credit.
Ex-husband faces credit fraud counts
The Star-Ledger - Fri, 05 Sep 2008 18:57:52 GMT
A Bloomfield man was arrested yesterday and charged with running up $300,000 in credit card and home equity debt he illegally secured in his ex-wife's home, Bergen County officials said.
National City to permit closure of equity lines
The Toledo Blade - Fri, 05 Sep 2008 09:18:44 GMT
CLEVELAND — National City Corp., Ohio’s largest bank, said yesterday it will let some customers close their untapped home-equity lines of credit, without penalty, to reduce liabilities on its balance sheet. The lender will reward customers who accept the offer, a spokesman said without providing details. The announcement was made a day after Standard & Poor’s downgraded National City’s ...
Drop in housing values affects home equity loans
Courier-Post - Wed, 03 Sep 2008 07:12:25 GMT
An increase in consumer complaints over the cancellation or reduction of home equity lines of credit has prompted one federal banking regulator to remind financial institutions about the laws governing this type of loan.
Federal regulators examine lenders' curbs in home equity lines of credit
The Palm Beach Post - Mon, 01 Sep 2008 01:15:29 GMT
A jump in consumer complaints over the cancellation or reduction of home equity lines of credit has prompted one federal banking regulator to remind financial institutions about the laws governing this type of loan.
Exploring a reverse mortgage
Minneapolis-St. Paul Star Tribune - Sat, 06 Sep 2008 21:24:20 GMT
Consider options: A traditional mortgage, home equity loan or line of credit might prove best. Consider costs: Weigh high upfront costs in reverse mortgages. One expense is "non-recourse" insurance, so if you collect more in payments than your house is worth, your heirs don't pay that balance.
Bank offers lure to close home equity lines
WKYC Cleveland - Sun, 07 Sep 2008 01:02:29 GMT
TRAVERSE CITY, Mich. -- An independent study says a federal agency's seven-year effort to document possible links between industrial pollution and health problems in Cleveland and other Great Lakes cities was flawed by substandard science.