What Are Home Equity Lines of Credit With Flex Line?

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Home equity lines of credit with flex line are set up ahead of time to ensure that the bank is obligated to loan out that money at a fixed rate when it is needed. Understand flex line credit lines with information from a financial manager and currency trader in this free video on finance.

Part of the Video Series: Credit Reports & Credit Scores
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Video Transcript

Hi, I'm Roger Groh. We're here to talk about home equity lines using flex line. If you need to borrow money for a large purpose, maybe buying a car; maybe you're buying a second home; maybe your paying tuition; one of the ways that Americans have used of the last many years to do that is to assess the value that's built up in their home, using to what amounts to a second mortgage. Then taking that money back out and using that money to apply for a purchase. Well, most of us don't know when those exact dates are going to come when you need large amounts of money. But if interest rates were low and you can borrow money really cheaply, it will be a wonderful thing to be able to withdraw that money when you wanted to. So this is about ahead of time, setting up a line of credit that you can access with a fixed rate and you don't have to take it out. It's just that the bank is obligated to lend that money to you if you decide to take it out at some point up the road; with the interest rate either being fixed or floating. Seems like a reasonable move to make if you think possibly a large purchase would be coming up the road. Now I'm Roger Groh and that's little bit about flex lines of credit using home equity loans.

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