Borrowers can take out a home equity line of credit and never repay a dime. That's because a HELOC is a line of credit, meaning if you never actually take any of the money available, you won't ever need to pay it back. It's available by writing a check for more than you have in your account or by making withdrawals against a specific account at your lending institution.
Some of the characteristics inherent with a HELOC are:
Generally, an adjustable-rate loan
Once the money has been repaid, you can borrow it again
Flexible payment terms, sometimes as low as 1% of your loan balance
Note: The time to apply for a HELOC is when you don't need it. It's credit that will be available to you should you ever need to draw on it, whether you are subsequently unemployed or facing an immediate financial emergency.
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