TopicPoint

This is a secured debt loan that is backed by your house as an asset. If you own a home and have built up equity in it, this is one loan to consider. The rates are usually pretty good, tied to the prime rate, and float with the market. In addition, you can open this line of credit at any time and just let it sit for emergencies- you are usually given a checkbook or credit card to tap into this loan. Like a credit card, it has a maximum limit, and you pay back what you owe plus interest, and there's usually a minimum payment to be made each month. In addition, depending on your situation, there may be tax benefits with using a HELOC.