QandAs: Loans

Can you convert a Home Equity Line of Credit into a Home Equity Loan?

Answer:
It is possible to covert home equity lines of credit into home equity loans in certain cases.

There are home equity loans that can be converted into fixed interest rate home equity loans. However, this is not the case with most home equity loans. Whether or not this option is available to you depends on the terms and conditions specific to your particular loan.

Typically, if you have a home equity line of credit and you want to switch to a home equity loan, you will not be able to simply convert. Instead, you will have to apply for a new home equity loan. Applying for a loan requires completing loan application paperwork, going through credit qualifications, and paying closing costs if you are approved.

Upon approval for a home equity loan, you can utilize all or part of the proceeds of the loan to pay off the balance on your home equity line of credit. The home equity line will then be paid in full, and will have been replaced with a home equity loan.


	more Q&A sessions like this
	What is a second mortgage? Can I consolidate my debt on a credit card? Is Interest on a Home Equity Line of Credit Tax Deductible? Can you convert a Home Equity Line of Credit into a Second Mortgage? What is an 80/20 Mortgage? Why do my Home Equity Line of Credit payments change Month-to-Month? What is the Minimum Amount of Debt required to apply for a Debt Consolidation Loan? What is the difference between a Home Equity Loan and a Home Equity Line of Credit? Is a home equity loan considered refinancing? Is interest on a home equity loan tax deductible? Where can I get cash for a remodeling project?