Source: Sacramento Bee
home equity lines of credit
Home equity loans and lines of credit are making a comeback.

Not long ago, homeowners who had some equity often used cash-out refinances to pay for home remodeling, to consolidate debt or pay for a child’s school tuition. But that was when mortgage rates were lower. As mortgage interest rates increase, making refinancing less attractive, many are now considering getting a HELOC or a home equity loan.

First, let’s start by defining the terms.


A home equity loan is a second mortgage for a fixed amount, at a fixed interest rate, to be repaid over a set period.

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