Utah Home Equity Line of Credit
A home equity line of credit is sort of like a credit
card but is considered as a secure form of credit.
Also known as a HELOC, home equity line of credit in
Utah works by applying with a mortgage lender in Utah
or at your local bank.
You put down how much of a
credit line you want to have open. Most of the time,
when you open up the HELOC, you won't need to take out
any money right away, so it will be like having a bank
account or credit card; only used when you write a
check taking the money out of the account.
For example, you can have a HELOC with $20,000 limit
and say you need $5,000 to pay for your son's college
education, you simply can just write a check from the
HELOC account for $5,000, leaving you with $15,000
The interest rates are lower than credit card rates
and are also tax deductible. Again, just like a home
equity loan, if you cannot pay off your home equity
line of credit, you may be forced to sell your home or
have your home foreclosed.