How to Obtain Funds With a Home Equity Line of Credit

Video Transcript

"Hi this is Matt McKillen with Innovative Financial Group. The question posed to me today is how do you obtain funds from your home equity line of credit? OK, let's figure this part out, you've got your home equity loan in place, generally a home equity line of credit is the most popular equity loan to have. Usually the banks will give you a couple different options on how to obtain the cash from your loan. You have to remember that a home equity line is similar to having like a charge card. You can borrow money against your home equity line, turn around 30 days later and pay it back and then go back and re-borrow the funds at a later date. So usually the banks will supply you with a couple different options to be able to pull the cash out. One being is that they'll give you a checkbook. You can literally write a check that you can pay a bill, you can write it to yourself for cash and then when the bank processes the check, they apply that check to your home equity line of credit as an advance. A lot of other home equity lines also give you the ability of using a Mastercard or a Visa. Kind of scares me a little bit to think that I would have a Visa card that's tied to the equity of my property but it is a very simple way to use, to get access to your funds versus a check in case you needed to purchase something online let's say travel plans or if you had a family emergency you can use like a Visa debit card type card to access your home equity funds. Either ways those are the two most popular ways to access funds from your home equity line of credit. Again my name is Matt McKillen and I'm with Innovative Financial Group."