Advantages of Home Equity Line Of Credit are as follows :
1) Most home equity lines of credit have little or no closing costs.
2) Customer can use the loan to draw on only as he need the money.
3) Customer only need to make interest only mortgage loan payments which means lower monthly mortgage payments than with a fixed interest rate loan.
4) Variable mortgage interest rates are usually much lower starting rates than with fixed interest rate loans.
5) A home equity line of credit works much like a checking account, with the limit determined by the amount of equity customer have in his home.
6) Interest may be tax deductible.
7) The interest rate paid on the average home equity line of credit is generally lower than the interest rate pay on the average credit card.
8) Customer can also use the remaining unused balance of the equity line as an emergency fund.