Home Equity Line Of Credit

Q: What is the meaning of HELOC(Home Equity Line Of Credit)? What are its pros and cons?

A: Some banks and financial institutions give you loan based on market value of home and other residential properties(mortgage) own by you. The benefit is usually the interest rate is less than the personal loans. The negative factor can be you can lose the property(home) if you failed to pay the principal and the credit in time. Some people use it to pay their credit cards bills and other loans which are taken at high interest rates. But be careful to read the fine print and all other conditions.


Q: Am i able to get a home equity loan when if have bad line of credit or say FICO score?

A: As you have bad Fico score, then the amount of your loan can be varied. Talk to the loan officer about the matter. The HELOC also depends upon the area or state of your residence.


Q: What is the rate of interest followed by the heloc?

A: The HELOC has its interest rates varied depending upon the credit score and some other factors. It usually varies from one to three percent more than the latest fixed rates.