<% String pageType = "About"; %> <% String subPageType = "Mortgage Library"; %> <%@ include file="includes/header.inc"%> HELOC - Home Equity Line of Credit

A Home Equity Line of Credit is a designated amount of money that is available for you to borrow. It is secured by the equity you have in your home. You “draw down” your line of credit and only make payments on the amount you have borrowed. You may pay an annual fee to maintain the line of credit and incur costs, such as an appraisal, application fee and recording fees, to establish the line of credit.

Funds are accessed by simply writing a check. A home equity line of credit typically has more favorable rates than a credit card, but these rates vary monthly depending on the index used to set your rate.

Consult with your tax adviser to see if the interest you pay is tax-deductible. It is important that you understand the terms of your home equity line of credit. Features may differ between products offered to you. For example, your interest rate may be calculated upon different indices, your ability to obtain advances may be for different time periods, etc. Read all documents and disclosures carefully.

A home equity line of credit is an excellent source of funds for ongoing expenses such as tuition or remodeling costs. You borrow the money only as you need it. You can repay it and borrow again as needed.

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