Lenders are rolling out the red carpet again on home equity lines of credit (HELOCs), and borrowers are hearing the siren song of low rates, easy credit, and generous repayment terms.
We would be the first to sing the praises of HELOCs. Home equity loans and lines of credit are powerful, flexible financial tools.
However, we’ve seen far too many examples of homeowners getting into BIG trouble with home equity borrowing.
So make sure you familiarize yourself with the pros and cons of home equity loans before you get into a situation you can’t get out of.
Run the numbers and do your homework thoroughly. For helpful tips on thoughtful home equity borrowing, check out Kerry Hannon at NextAvenue for her “Cautionary Advice on Getting a Home Equity Line.”