The Pro’s and Con’s of a Home Equity Line of Credit

Of the many ways there are to tap into the equity that your home has acquired with time and appreciation, one of the most flexible is to set up a Home Equity Line of Credit, or HELOC, as it is commonly known.  Unlike a standard home equity loan that is paid to you in a lump sum and paid back in a fixed amount of time, usually at a fixed interest rate, a HELOC establishes a certain level of credit, secured by a lien on your home, against which you may draw as you need it.  It can provide you with a comfortable cushion for unexpected expenses like small renovations, extra college bills or medical expenses.

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