Getting a home-equity line can be a good move, as credit starts up at a little bit at a time, as long as you use it the correct way.

During the real estate boom, the home-equity line of credit fueled thousands of hardcore kitchen makeovers.

Without an issue, the housing bust and the credit crisis stopped the HELOC party.

Most lenders stopped issuing new lines and several thousands of homeowners had their lines cut or frozen altogether.

Be sure not to give up on the HELOC just yet. As the economy and housing prices begin to stabilize, it is expected to come back.

According to MortgageBot, a company that processes real estate loans, several lenders are writing lines again.

HELOCs are no longer the big deal that they once were known as.

Lenders used to present the lines for 0.5% point below the prime rate, which is currently 3.25%, but now the cheapest you're probably able to find is prime plus a point, give or take.

Also, most lines have the lowest possible rate they lines can go, of about 4%, or they have a floor.

A line of credit can still be a relatively cheap way to borrow if you have more than 20% equity in your home, and it's a much better source of emergency cash than a credit card.

Posted by Tamborrel Bulox Team on
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