A home equity line of credit is simply a loan that uses the equity that you have built up in your home as collateral. It works a lot like a regular line of credit but it is a secured loan.
While this kind of loan offers many advantages, there are risks and disadvantages that you have to keep in mind. Many people who have taken this kind of loan have benefited greatly from it while others have regretted taking out the loan.
Advantages of a home equity LOC
There are a number of advantages that come along with this loan type including:
Financing
If you are looking for finances to start or expand a business or to invest is a profitable venture, you can take advantage of the loan to access funds for financing.
Interest rate
The LOC
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