About Home Equity Line of Credit Loans

Video Transcript

"This is financial adviser, Patrick Munro, talking about home equity line of credit loans. Basically when someone wants to take money out of their home for a purpose either education, buying an automobile or some other useful asset they can look to their home as well almost like an ATM. They can take money out and the bank will support that effort. It is called a home equity line of credit and normally it is referred to as a Heloc and Helocs vary in interest rates depending on the value of the home, how much you are taking out of the home relative to its overall value and also your interest rate, tied to your credit so be mindful to keep your credit situation very very sound and the highest credit rating that you possibly can so that you can lower that interest rate and therefore take out more money out of your home. Having a good credit rating is so important. This is Patrick Munro talking about the different types of home equity lines of credit."