Hi All,
Could some one tell me about the secured loan(home equity) pros & cons.
I am geting prime +1 % and fees $ 150 for processing. There are penalities if you back out with in one year $ 500.

I have not taken such type of loan but now I want to go for it. I will appreciate if some one can explain how it work and are there any bargain about interst rates/ or any cheapest rate available.
Thanks for all for thier feedback
Regards,
Derry

Most of the major banks offer Prime + 1% currently.
It is a very handy tool to have. We always have an habit of keeping some extra money on the side for just incase or emergency situations. Technically this money should be paid towards the mortgage. Once you get the HELOC you have the freedom of every penny you save can be paid towards high interest cost debt's like credit cards or mortgage. If you need the money in future just use from HELOC. Best part is you can withdraw how much you want and repay any time.