By [http://ezinearticles.com/?expert=Carrie_Reeder]Carrie Reeder The options for tapping into your home equity are numerous. Some
homeowners choose to refinance, while others take advantage of home equity
loans. A home equity line of credit is a great option for homeowners who
want access to their home's equity over a length of time. There are
benefits to a home equity line of credit. However, to avoid the pitfalls
of these types of loan, consider the following. What are Home Equity Lines of Credit? Home equity lines of credit are revolving credit accounts that are
protected by your home. The term revolving credit is often associated with
high interest credit cards. However, lines of credit differ from credit
cards. For starters, lines of credit are easier to qualify for. The
interest rates are significantly lower than most credit cards, and home
equity lines of credit are tax deductible. Common Uses of a Home Equity Loan Home equity loans are often obtained for large expenses. These are best
used for financing home improvement projects, debt consolidation,
paying for a child's college expenses, etc. Additionally, some homeowners
obtain home equity lines of credit as a means of having a cash reserve in
the event of an emergency. Pros and Cons of Home Equity Line of Credit While this home equity option is useful, there are advantages and
disadvantages. The benefits surround the ability to payoff high interest
credit card debts and other consumer loans. If using a line of credit for debt consolidation, homeowners will
simplify their lives by having a single debt payment, as opposed to several.
Furthermore, because of lower rates, homeowners are able to repay a
home equity line of credit much sooner. The disadvantage of home equity lines of credit is that your home
serves as collateral for the loan. If for any reason you are unable to repay
the loan, the lender may claim your property. This results in losing
your home and equity. To avoid foreclosure, borrow a modest amount of
money. Also, repay the funds promptly. The problems lies when people think
of home equity lines of credit as free money, and begin borrowing and
spending frivolously. Carrie Reeder is the owner of [http://www.abcloanguide.com]http://www.abcloanguide.com. View her recommended sources for a home equity line of credit.
View her recommended [http://www.abcloanguide.com/homeequityloan.shtml]home equity line of credit lenders online. Also, view her recommended lenders for [http://www.abcloanguide.com/refinance.shtml]100 percent mortgage refinancing online. Article Source: http://EzineArticles.com/?expert=Carrie_Reeder http://EzineArticles.com/?Home-Equity-Line-of-Credit---How-to-Benefit-the-Most-from-a-Home-Equity-Line-of-Credit&id=153608 phentermine to order
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