Ask Experts Questions for FREE Help !
Ask
    ktdid's Avatar
    ktdid Posts: 1, Reputation: 1
    New Member
     
    #1

    Dec 30, 2011, 09:50 AM
    Home equity loan or line of credit
    Which is better, I have no mortgage on my home
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    Dec 30, 2011, 10:03 AM
    Depends on your needs. I prefer a Line of credit that can be used as needed and you only pay interest on the amount used.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #3

    Dec 30, 2011, 10:05 AM
    Again I prefer neither and own my home free and clear with no chance of losing it if there was something to happen.

    But if there is a grave emergency and you have to borrow money without knowing how long you wish to borrow it for, what the interest rates are and other details it is hard to say.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
     
    #4

    Dec 30, 2011, 01:15 PM
    You have to shop around and find out all the details of upfront costs, not just rates, as well as requirements. Some of this depends on how much you want for how long. If a long time, you might want to do a fixed rate mortgage. (Lines of credit/equity loans are always variable, I think?)
    NotorK's Avatar
    NotorK Posts: 5, Reputation: 1
    New Member
     
    #5

    Jan 7, 2012, 10:26 AM
    Home equity line of credit is just that, a line of credit. Its like a credit card, with a much larger limit. The payments are usually calculated like a credit card too and higher than that of a Home equity loan, which is a regular amoritized loan.

    It depends on what you are getting the loan for. If you are using the money to improve the home, then it might be a good idea to get, or if you are switching higher interest debt for lower interest.

    I don't recommend getting a home equity loan to buy a car, or pay off student loan debt, etc.

    I work in the lending industry and have for over 15 years.

    In the end, debt free is better for you, unless you have a real need for the funds.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Home equity line of credit [ 5 Answers ]

My parents had an line of credit on 2 homes. This was done in 2001. In 2206 we transferred all property into a trust with my mom/dad as trustees. My dad dies in 2006 and my mom in December of 2010. My mom was paying both loans up until her death. We stopped paying on them and now the bank is...

Collections for a Home Equity Line of Credit [ 1 Answers ]

Help needed here. My 1st mortgage is willing to modify (thanks to the gov't), however, my 2nd is a "securitized" loan (different lender) and they say they are unable to modify. The woman at the bank said if I modify my 1st, in order to keep my loans, my 2nd payment would actually increase to pay...

Home equity line of credit [ 1 Answers ]

In a chapter 13 bankrutcy can a home euity line of credit loan be reduced

Can equity line of credit loan balance be frozen and possibly used to pay creditors [ 1 Answers ]

If I continue to pay my home equity line of credit loan and leave an available balance that can be taken out if needed. Is it possible that that available balance can be frozen and if so can it be taken from me to pay other bills? My bank account was frozen because of a estimated sales tax bill...

Home Equity loan or Consumer Credit Counseling [ 7 Answers ]

Hi, I need some advice. I have about 52,000 worth of credit card and loan debt. I have a credit score of 680 which was 721. I am currently with a consumer credit counseling service which I have to pay 1200.00 a month for 4 years. Im having a hard time making that payment! My question is should...


View more questions Search