Is a Home Equity Line of credit smart?

Answer 1

If you mean to use it to turn short term debt (credit card maybe) into long term debt and put your home at risk (which is what a lot of equity loans are used for) --- then it sure does not sound like smart to me.

If you are going to use to go into a sure fire highly profitable business (yeah like there is such) --- then it probably is a great idea.

Answer 2

Most questions should be answered starting with..It depends!! If you have debts, credit cards, and other loans, with high interest rates and you want to pay them off with a single, low interest Equity Loan, the answer is YES, definitely, and do it ASAP. You will be left with a single payment with significant savings from the previous multiple loan payments. If you just want to get cash out and you can afford it, do it. However, if you are not careful about borrowing against your HOME, an Equity line of credit may be easy cash but also a quick way to get strangled with debt and possibly loose your house.

Answer 3

ONLY if you are absolutely certain you can make the payments. With all other loans, you can be certain the creditor can not take your primary residence.

With the home equity line of credits, this protection is non existent, for the very reason, you are using the equity of the home as your collateral

If you don't pay, the WILL take your house.

Answer 4

Yes, because you might have bad credit and they just might let you get a loan with a co. signer with good credit. Then you can live and buy thiings for your home and add on to your home, even insurance purposes etc;whatever your home is worth.quity

Answer 5

Only if you definitely have the means of paying it off. If you default on the loan, you've lost your house.

Interest on the loan is tax deductible, which is nice.

Answer 6

I think so.