Quote:
Originally Posted by red sky
HELOCs are back by the equity in your house thus they have lower interest rates. The other difference is that you are required to only pay the interest on your HELOC but similar to an unsecured LOC you can pay as much principle as you want without penalty.
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Isn't that the same as a regular LOC, you only have to pay the interest? Is a HELOC the same as borrowing against your house that got so many in the US in trouble? Worse case scenario, if something happened and we couldn't make the payment (i.e. lost our jobs, etc) would they come after our house?