Illinois Home Equity Loans – Home Equity Loans vs. Lines of Credit


Visitors: 147

Declining home values in some areas of the country have made it hard for homeowners to borrow from their equity. Fortunately, such problems don't really exist in Illinois. Cities like Chicago and Springfield have seen huge increases in the last few years. If you own an Illinois home, you could take out a home equity loan or a home equity line of credit to get money for debt consolidation, home remodeling, education expenses, or other costs.

Loans and lines of credit work much like a second mortgage, because they are secured by your property. Each equity option has pros and cons, which makes deciding between the two rather difficult. Here is an overview of each type of equity financing:

Illinois Home Equity Loans

An Illinois home equity loan allows you to borrow money from your home's equity in one lump sum. This type of loan usually has a fixed interest rate and a term that can last anywhere from 3 to 15 years. The advantage of a home equity loan is the fact that rates don't fluctuate; the disadvantage is that you can't get more money out of the loan without refinancing. Currently, rates on Illinois home equity loans average 7.53 percent.

Illinois Home Equity Lines of Credit

An Illinois home equity line of credit works a lot like a credit card. You are allowed to borrow up to a specific amount of money during a specific amount of time. As you make payments on the principle, your credit revolves, allowing you to borrow again and again. The drawback is the variable rate that is common with this sort of financing; it can make your payments very unpredictable. Currently, rates on Illinois home equity lines of credit average 7 percent.

Visit Illinois Lending Center for a list of Recommended Illinois Home Equity Loan Lenders , whether you are looking for home purchase, refinance or a home equity loan.


Article Source:

Rate this Article: 
Home Equity Loans Or Home Equity Line of Credit
Rated 4 / 5
based on 5 votes

Related Articles:

Home Equity Lines of Credit Vs. Other Conventional Loans

by: John Ross (June 17, 2005) 
(Finance/Mortgage Refinance)

Home Equity Loans & Lines of Credit - How They Work

by: Carrie Reeder (November 28, 2005) 

Top 5 Consumers Demands for Home Equity Loans and Credit Lines

by: Brendon Daly (February 02, 2007) 

Home Equity Lines for Good Credit and Bad Credit Mortgage Loans

by: Corey Senn (November 23, 2005) 

Idaho Home Equity Loans – Bad Credit Home Equity Loans

by: J. Hale (November 14, 2006) 
(Real Estate)

Home Equity Loans for People with Bad Credit - Reasons for Getting a Home ..

by: Carrie Reeder (January 04, 2006) 

The Difference Between Home Equity Loans and Home Equity Line of Credit

by: Connie Barker (January 19, 2008) 

Bad Credit Home Equity Loans - Fund Against Your Home Equity

by: Johns Tiel (July 29, 2008) 
(Finance/Home Equity Loans)

Home Equity Lines of Credit - How Soon after Buying a Home Can You Get a Home ..

by: Carrie Reeder (December 21, 2005) 
(Finance/Mortgage Refinance)

Home Equity Loans Or Home Equity Line of Credit

by: Jason Holter (June 27, 2008) 
(Finance/Home Equity Loans)