Benefits
- Comes with a draw period of several years to use and pay down the credit as needed.
- Repayment terms can last up to 30 years between the draw and repayment period.
- Rates may be better than personal loans for fair and good credit borrowers.
Drawbacks
- You could lose your home if you can’t repay the credit extended.
- Interest rates may vary until you finish your draw period.
- Processing can take several weeks when establishing your line of credit.