Home Equity Line of Credit
A home equity line of credit is a form of revolving credit in which your home serves as collateral. Once approved for a home equity line of credit, a borrower will most likely be able to borrow up to the credit limit at any time. Borrowing from the line is typically done by writing special checks drawn on the line. Under some home equity lines, borrowers can use a credit card to draw on the line. A home equity line is one of the cheapest sources of credit for most homeowners. Therefore, small business owners that are looking for credit and also own a home may find that a home equity line is their most cost-effective option.
|
