Understand how a line of credit on your home and home equity loan are different before deciding to apply for this type of financing. Alternatively, you may browse over to http://www.onlinehomeequity.net

1. Comparison: Home Equity Loan and
Home Equity Line of Credit
By Scott Adams

2. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
Revolving credit, with a specific A fixed amount of money, up to
What You Get credit limit of up to 100 percent 100 percent of your equity in
of the value of your home (its your home (its value minus
value minus all debts against it). your first mortgage debt and
Some lenders will allow you to other debts). Some lenders will
borrow up to 125 percent of the allow you to borrow up to 125
value of your home. percent of the value of your
home.

3. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
You typically need to provide You typically need to provide
How To Qualify proof of your income, home proof of your income and
ownership, your mortgage and home ownership, and proof
how much equity you have in that at least 20 percent of the
your home. An appraisal is value of your home is paid off.
usually required as well. An appraisal is usually required
as well.

4. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
Minimum payments (possible Fixed payments of interest and
How To Repay as interest only) every month; principal over a set period of
ultimately you have to repay time.
the entire amount borrowed
along with interest.

5. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
You have a 10 to 20-year The term of the loan can be as
How long it period which you can withdraw short as a year or up to 30
from the line (up to the credit years.
lasts limit), after which you have a
fixed period to pay back the
outstanding balance plus
interest.

6. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
Usually no closing costs, but Usually no closing costs, but
Costs may range from $150 to $800 may range from $150 to $800
and have an annual fee and which is lower than a first
non usage fee. mortgage.

7. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
You draw funds as needed, You receive one up-front lump
How you receive typically using special checks or sum
a credit card
the funds

8. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
The prime interest rate plus a Fixed or adjustable rate
Interest rate margin (which can vary from
one institution to another).

9. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
Interest may be tax-deductible Interest may be tax-deductible
Taxes (consult with a tax advisor). (consult with a tax advisor).

10. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
Which is suited Those who need access to Those who need a specific
funds now and in the future amount for an immediate need
for me and want the flexibility to use and want to receive all of your
your credit any time funds up-front and/or prefer to
always pay your loan in fixed
payments over a fixed period
of time.

11. Home Equity Line of Credit (HELOC) | Home Equity Loan (HEL)
HELOC HEL
Where do I Apply with your local bank or Apply with your local bank or
click the website below click the website below:
apply www.OnlineHomeEquity.net www.OnlineHomeEquity.net