How to Get a Home Equity Line of Credit

How to Get a Home Equity Line of Credit. A home equity line of credit is like a special checking account that taps into the equity in your home, allowing you to make improvements, pay for education, buy a car or whatever you want. And the best thing is, the interest is tax deductible!

Contact your banking institution. If you are already doing business with this organization, it might be more willing to keep you as a customer.

Contact local banks or savings institutions, which are more likely to do these types of loans.

Contact a local real estate mortgage broker for references of lenders who offer credit lines.

Look for the credit line with the lowest interest rate.

Compare terms. Most credit lines have a "draw period" (the period during which you can write checks and tap into your equity) of 10 years, and an additional repayment period of five years, for a total of 15 years.

Provide the documentation required by the lender. If the lender is a local bank or savings institution - rather than a mortgage lender - the time, fees and documentation required to complete the transaction may be significantly reduced.


  • Typical lines of credit require a minimum monthly payment of 1 percent of the used portion of the loan. If you don't use the money in your credit line, you don't pay on it. You only pay interest when you actually use the money.


  • A line of credit is secured by your home. Failure to repay could result in foreclosure and losing your home. Protect your checks! The checks that the lender provides you draw money directly from your equity.

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