The information for Us Bank Home Equity

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Q. I am thinking of doing a home improvement project, specifically, adding a 120 sqft room. I have the cash for doing this. But given the current economic condition, I'd like to have enough cash to sit on for emergency. So equity line of credit as the emergency fund. I think it is a valid strategy, butsince I am not familiar with this at all, I'd like to ask a few questions. 1. Can the rate of home equity line of credit fixed? Or is it always Prime+x%? 2. Do I have any obligation including payment or anything if I don't tap into the fund? 3. Is bank okay with it if I just sit on this line of credit and possibly never use it? Is there a time limit for the line of credit? 4. What is the best way to obtain this? Through my mortgage agent or just regular backs will do? 5. Anything about the line of credit that I don't know could come back and bite me on this?

A. Don't know whats available in your area. Here they are mostly prime+x% Only the points you may pay up front. If you finance the points you will likely have to make at least an interest payment on the financed amount. Usually the bank doesn't care. As far as I know, most home equity credit lines have a time limit by which time it must be paid off. What's best for one person may not be best for another. We tried going directly through the bank, but they did this flakey "drive by" appraisal that came in well below the value of our house. We contacted a mortgage broker friend of ours who had one of her appraiser friends come out and do a proper appraisal, and we then arranged the loan through her. If we didn't have her as a friend I would have paid the bank to do the appraisal. If you pay off the loan very early you might have to pay a penalty.

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The information for Us Bank Home Equity

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