1. Expert Systems and Decision Support By: William H Shorter III

2. The market value of a homeowner’s unencumbered interest in their real property – or the difference between the home’s fair market value and the outstanding balance of all liens on the property. Your home’s appraised value – what you owe

3. Every bank or lender will vary on the amount that they are willing to give Bank of America offers up to 85% of the value of your home minus what you still owe on the home Lenders will often look at your credit score and history, employment history, monthly income and monthly debts which can affect the amount they are willing to give

4. Fixed Interest Rate Typically has a higher interest rate than a HELOC Borrow the full amount all at one time Good option for households with strict monthly budgets Essentially a second mortgage

5. Repay both principle and interest monthly Interest is usually tax deductible for loan amounts up to $100,000 Cannot borrow additional funds Plans for repayment are offered typically anywhere from 5 to 30 years Banks will charge various fees for the application and set up of the loan

6. A home equity line of credit is often referred to as a HELOC Variable interest rate (usually lower than home equity loan) It may be possible to fix the interest rate after money is withdrawn Works like a credit card Good for pay-as-you-go situations

7. Use a HELOC if the amount you need is unclear Three major considerations when dealing with HELOCS are: 1.The interest rate could rise, increasing interest payments 2.The lender may offer a fixed rate for portions of what has been taken out 3.Most HELOCS provide interest only payment options during the draw period

8. The draw period is the period in which you can take money out of your account (usually lasts 10 years) Once the draw period is over, the repayment period begins which usually lasts for a period of 15 years.

9. The choice between a Home Equity Loan and a Home Equity Line of credit is rarely black and white. Most would suggest that If you have a set dollar figure for how much you need, to go with the Home Equity Loan since it’s a lower risk.