Loans (loan, foreclosures, credit, banks)

[micheleroll]

I just bought a house and I don't have any equity yet. I need to borrow between $30,000-$45,000 dollars to pay of a few bills. What type of loan should I ask for? Signature Loans at my banks only go up to $20,000. How does a home equity line of credit works?

[ChipL]

A home equity loan is secured by the equity in your house. It's a line of credit, which means it's there to use if needed. Once you pull out money from it, the payments are generally interest-only loans tied to the prime rate.

Did you put money down? If so, that's your equity. If not, it'll probably be years before you have enough equity in your home to get a home equity loan.

[MotleyCrew]

We have always had a golden rule never, never borrow money from the equity in your home. We now own both our homes free and clear. I am watching my neighborhood thin out due to foreclosures because they all borrowed too much during the spike and now can't pay it back. I would work a weekend job first.