Frequently Asked Questions about Home Equity Credit Lines

Here are the answers to the most commonly asked questions about home equity credit lines.

What is a home equity credit line?

A home equity credit line is a revolving line of credit secured against your home. This type of credit line can be used whenever and however you like, much like a credit card. Unlike a credit card, however, a home equity credit line has much lower interest rates and uses your home as collateral. This means that you will enjoy considerably reduced interest costs, but you also risk losing your home if you fall behind on payments.

How can I get quotes on a home equity credit line?

You can get quotes on a home equity credit line on our site for free by filling out our short, online form. The form will take only a few minutes to fill out and will ask you for basic contact information such as your name, phone number, and email address. Once we have this information, we will provide you with at least four quotes on a home equity credit line from various lenders. You can apply for a credit line on a lender's website or you can save your quotes and return to our site at your convenience.

Are you a lender?

No, we are not a lender, and we do not issue home equity credit lines. Instead, we are a free referral service intended to help our visitors find the right lender for them. We partner with many local, regional, and national certified lenders to bring you the lowest quotes possible on a home equity credit line. Our services are free and come with no obligation.

What can a home equity credit line be used for?

You can use a home equity credit line for any expense you like, but these loans are ideal for indefinite, recurring expenses. For example, you might be renovating your home and will have periodic, indeterminate expenses. With a home equity credit line, you can withdraw from your credit line anytime such expenses arise. You might also use a home equity credit line for education costs or other recurring expenses.

How is a home equity credit line different from a traditional loan?

A home equity credit line differs from a traditional loan in that you only have to pay back what you use. You will be approved for an amount of credit up front, which represents your credit limit or the maximum amount you can borrow at any one time. With a traditional loan, you receive one lump-sum of money that you have to pay back in full, regardless of how much you use it. Make sure you look through the break down of home equity line vs line of credit.