Home Equity Line of Credit

A home equity line of credit is a type of loan in which the borrower uses the equity in his home as collateral.

These loans are sometimes useful for families to help finance major home repairs, medical bills or college educations.

This is a revolving credit loan where the borrower can choose when and how often to borrow against the equity in the property. Like the closed end loan, it may be possible to borrow up to 100% of the value of your home, less any liens. These lines of credit are available up to 30 years at a competitive variable interest rate. The minimum monthly payment can be as low as only the interest that is due.