A Home Equity Line of Credit allows you to get cash from the equity you have in your home. Most lenders look for a cushion of 30% equity already in the home before they will consider allowing the homeowner to borrow against the home’s equity. With house values only beginning to rebound, some homeowners can’t meet this 30% requirement. Other homeowners find they have little in excess of this 30% requirement available to borrow against.
The rates offered by lenders for Home Equity Lines of Credit are close to those offered to home buyers.
Home equity is a consideration for estate planning. It is a major asset and in many cases the largest asset in an estate. Careful consideration needs to be given before a decision is made which will affect home equity in the short term and the long term.
Contact a law firm that handles estate planning and real estate matters for further information.