Home Equity Line Payments

Hello,
I took a home equity line to pay off a credit card. I closed the card and have now have paid down half of the home equity line. Are these payments reflected on my credit report just like any other revolving credit line. Or will will there always be the whole amount originally borrowed sitting out there until I pay off the line and close it? confused

Comments(1)

  • rajwarrior28th September, 2003

    Your payments are reflected as paid on time, late, etc. just like any other credit line.

    An equity line is treated like a revolving account (usually). That means that during a credit check, the company would see the available limit and the actual amount. Example: You have a $50K credit line but only have $25K in actual debt on it.

    Most lenders will take the entire available limit to add to your debt ratio since you are able to access that amount at any time. If you need a downpayment, they will also allow it to come from an equityline that has that amount available.

    Hope this helps,

    Roger

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