An Equity line is a revolving line of credit that uses your house as collateral. You can borrow from your available Home Equity Line of Credit at any time to pay for multiple purposes, including:
- Home improvements
- Education fees
- Car loans
- Special events
You pay interest and principal only on the amount you borrow. In addition, your available credit is replenished as you pay down the balance of your loan. You can re-use your credit for 10 years before it becomes a fully amortizing loan.
Consult with your tax advisor concerning the deductibility of interest and charges on your Home Equity Line of Credit.