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Home Equity Line of Credit Pro and Cons  by: Gary Gresham Home equity line of credit pro and cons are important if you decide to tap your equity in your home. Whether you are choosing a home equity loan vs equity line of credit, each loan is considered a second loan and is secured by your home. Here are some home equity line of credit pro and cons to make your choice a little easier. Pros: Most home equity lines of credit have little or no closing costs. You only need to make interest only mortgage loan payments which means lower monthly mortgage payments than with a fixed interest rate loan. Variable mortgage interest rates are usually much lower starting rates than with fixed interest rate loans. You can use the loan to draw on only as you need the money. You only pay interest on the money used not on the entire loan amount. You can use the remaining unused balance of the equity line as an emergency fund. Cons: Variable mortgage interest rates are not stable and could go higher than a fixed interest rate loan. Monthly mortgage payments are not level and can fluctuate a great deal. Most home equity lines of credit have yearly fees paid to the lender. With equity rates rising quickly it's easy to spend your all of your home equity. It makes sense to use the equity in your home to pay down debt, or pay credit cards off. But use the money wisely and only use as little equity as you have to. Hopefully these home equity line of credit pro and cons will make your choice of equity loans easier for you. Copyright © 2005 Credit-Repair-Facts.com All Rights Reserved. About The Author Gary Gresham This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative articles that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html. This article was posted on November 03, 2005 Read More Articles from the "Business and Finance" Category: Sowing and Growing Your Network by Helen Wilkie Keeping Your Business Alive: Use 4 Color Postcard Printing! by Marlon D. Ludovice Online Buying Guide by John Parsons Little Known Tips To Wipe Out Day Trading Losses Guaranteed by David Jenyns Loan Protection Insurance Cover Providers Are Still Mis-Selling by Simon Burgess Victims of Hurricane Katrina – IRS Gives Tax Relief by Richard A. Chapo How A Home Equity Line Of Credit Can Help Your Finances by Thomas Erikson Staying Sane While Wall Street Crashes by David Leonhardt a.k.a. The Happy Guy What Kind Of Goals Are You Setting For Your Business? by Jennifer Givler Fast Color Digital Printing For Your Four Color Printing by Marlon D. Ludovice << Back to "Business And Finance" Index

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