It's common knowledge that banks are more than willing to loan you money when you don't need it. But if you hit a rough spot in your financial life and need cash desperately. It's like pulling teeth to get the money you need.

In other words it is much easier to get a home equity line of credit when you don't really need one. Than to wait and try and get one when you really need it.

The beautiful thing about an equity credit line. Which makes this a desirable mortgage loan. Is that there are no payments due unless you use it. This home equity loan can usually be had for free for those with good credit.

A Home Equity Line Of Credit Is Cheap Insurance

What would you do if you or your spouse were to get injured or lose a job? Do you have enough money in the bank to cover your expenses including your mortgage payments for several months? If not, this is where your home equity loan comes into play.

You can draw on the equity loan to make all of your debt payments plus pay for living costs until the crisis is over. This is a much better alternative than using credit cards to live off of. Simply because the payments are typically going to be smaller. Plus the interest is tax deductible. (consult with your tax advisor)

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