Utah Home Equity Line of Credit

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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 available credit.

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.