Using A Home Equity Line Again

The article below states that they are coming back as the market stabilize however they have been around since the bust.   The problem is that most of them are capped and you have to have 25% equity in the property AFTER you take out the home equity line, 75% loan to value.  Even when things do stabilize I would be surprised if any bank goes above 80% loan to value. 

The article gives you tips on using it the right way.  Don’t max your line out and make sure to use it for the right reasons such as a car loan, etc. since you will get an interest deduction.  If you don’t need it at all right now it is nice to have for emergency use especially since if you don’t draw on it you won’t pay any interest.  Remember, banks lend you money when you don’t need it and as we have learned when you do need it, good luck.    

http://money.cnn.com/2009/12/14/real_estate/home_equity.moneymag/index.htm?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29