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Is a home equity loan considered a savings or checking account?

 
bella69147

Asked by bella69147 at 12:07 PM on Feb. 16, 2010 in Money & Work

Level 5 (59 Credits)
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Answers (9)
  • Ok two things, you guys are talking about a home equity line of credit or (HELOC) which is a revoling line like a credit card, you can draw from it, it also has a revolving rate based on prime. A home equity Loan, which is what she says see has is a loan its a fixed amount of money paid over a fixed amunt of time, similar to a second mortgage. Also very important if either the Home Equity loan or the HELOC is in second position meaning you have a primary mortgage, no they can not foreclouse on the property, under any circumstance, its in second position, if the primary is paid on time the other lein can not force a foreclouser, you can not have your home taken from you for not paying a second lein EVER!!! Thats a general misconception. Just look into if you have either a line of credit or a loan. If you have any other questions please feel free to send me a message.
    dDanaD74

    Answer by dDanaD74 at 10:57 PM on Feb. 16, 2010

  • No

    A home equity loan or line of credit allows you to borrow money, using your home's equity as collateral.
    Anonymous

    Answer by Anonymous at 12:10 PM on Feb. 16, 2010

  • neither. its a line of credit basically. you can withdraw from it but you dont actually put anything in it. usually the first few yrs you pay it back its interest only payments anyhow.
    Anonymous

    Answer by Anonymous at 12:10 PM on Feb. 16, 2010

  • neither. It's a mortgage. If you don't pay it back or fall behind they can foreclose on you.
    motherofhope98

    Answer by motherofhope98 at 12:26 PM on Feb. 16, 2010

  • Not even close. It is basically money you "borrow" based on your house's value while using your house as collateral.
    MLM0503

    Answer by MLM0503 at 12:28 PM on Feb. 16, 2010

  • it's a line of credit

    although it works like a checking account, you can withdraw money and write checks off of it. But you have to pay it back + interest
    Anonymous

    Answer by Anonymous at 12:37 PM on Feb. 16, 2010

  • to add to anon :37--

    and if you don't pay it back you LOSE your home. Just think about it....
    Anonymous

    Answer by Anonymous at 1:35 PM on Feb. 16, 2010

  • It's like a credit card. Except if you default, they, uh, take your house.
    whiteroses82

    Answer by whiteroses82 at 1:55 PM on Feb. 16, 2010

  • Thanks Dana. I can definitely appreciate your advice.
    bella69147

    Answer by bella69147 at 9:57 AM on Feb. 17, 2010

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