Monday, March 06, 2017

home equity loan, home equity line of credit, home loan

  • home equity loan (HEL) -- interest rate is fixed, better, lower risk
  • home equity line of credit (HELOC) -- interest rate is adjustable, rate rise and fall along with the general interest rate in the economy, (interest rate may rise), thus greater risk; the only time to use a HELOC is if u think rates will remain stable or decline during ur payback period
  • don't use HELOC, just keep HELOC handy for emergency
  • don't use these home loan to pay off credit card debt

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