Line of Credit Home Loans - Equity Loans
A line of credit loan can be likened to a giant credit card. For example, if your home is worth $300,000 and you borrowed 80% of it's value you would have a loan of $240,000. As you repay the loan, you are able to access any equity available. For example if your loan balance was down to $180,000 you could immediately access up to $60,000 without applying to the lender.
Line of Credit or Equity loans have been promoted as being effective in paying off your mortgage more quickly but this happens only if you are very disciplined in your spending habits. For many people the temptation to keep the loan up to it's limit is too great and for them, and an equity loan is not the best choice.
Line of credit loans work very well for the disciplined borrower, and for investors who need instant access to cash to take advantage of any bargains that come across their way.