Home Equity Loans Are Offered In Various Forms, Including Credit Lines. In Other Words, Theborrower May Have The Choice To Consider Home Equity Loan Or Line Of Credit. The Equity Loansare Offered In One Large Sum To The Borrower To Help Him Pay Off Debts, Reduce High Interest Oncredit Cards, Pay Off Tuition, Remodel His Home To Build Equity, And So Forth. Once The Borrower Agrees To The Terms And Conditions On The Loan, The Borrower Often Receivesmoney To Repay The First Mortgage And Additional Savings To Remodel The Home, Or Do What Theborrower Intended To Do With The Money. On The Other Hand, If The Borrower Is Offered A Line Ofcredit For Ten Years, At Leisure, The Borrower Can Use The Credit For Any Purpose Intended By Theborrower. The Line Of Credit Allows The Borrower To Payoff The Loan Differently From The Equitymortgage Loans. It Depends On The Lender, But A Few Have Restrictions On The Credit Lines, Meaning That Theborrower Can Take Out The Full Amount At Once Or Else The Borrower Can Only Take Out Limitedamount. Once The Balance Is Paid In Full, Then The Borrower Can Take Out More Credit To Use Atleisure; However, Some Lenders Stipulate What The Money Must Be Used For, Regardless If Theborrower Is Repaying The Debt. The Interest On Credit Lines Are Prime Rates That Are Not Based On A Fixed Interval. Thus, Thisposes A Threat To Most Borrowers. The Home Equity Loans Are Often Fixed Rate And Deductibles Ontaxes May Be Included. Thus, To Decide Which Option Is Right For You, You Would Weigh Out Thedifferences Of The Terms And Conditions, Stipulations, APR, Interest And Other Pending Costsinvolved In Loans Or Credit.
