Home Equity Line of Credit ! Line of credit or Equity Loan?

Home Equity Line of Credit ! Line of credit or Equity Loan?

I want to do some work on my house. Would it be better for me to get a line of credit or a home equity loan? Whatis the difference?

The Answers : A line of credit is usually an unsecured expandable account from which you can either take a lump sum or draws against the note amount. A home equity line of credit is a line of credit attached to your property's title. Truth be told you would probably be better off to just refinance your house... right now with the fed raising the prime rate in the fashion that he is, you can actually get a lower rate by refinancing your whole home as opposed to paying prime plus 1 or even plus 2 in some cases. If you would like to look into this feel free to drop me a line I can help you get it all straighted out!

Answer # 2 : i've done both, money gets tight, the loan is a one time amount-the equity line of credit has worked better for me with the low payments, and like a credit card, i can pay it down to have more money available- just be careful with interest rates, they can vary a LOT between companies .

Or : You can get lines of credit attached to the equity in your home.The only difference is with the line, you just use what you need, up to the equity you have in the home, with the loan, you borrow a fixed amount over a fixed term.

Or : Often times, a home equity loan is a line of credit. A line of credit enables you to only pay interest on the money you have actually used. You can write checks or sometimes use a debit card attached to the line of credit to pay for the improvements made on your house. A home equity loan will put a 2nd lien on your home. You are borrowing against the equity in your home. This would, however, more than likely have a lower interest rate than just an unsecured line of credit.

Or : Equity loan allows the bank to remortgage. You would have to have enough equity for the loan. A line of credit is based on your credit worthiness and may not be secured against your house.