Pros

• HELOC’s usually offer a lower interest rate than other loans and/or credit cards.
• The costs of obtaining a home equity line of credit are relatively low.
• Home equity lines of credit can be used for debt consolidation, home improvement projects, college tuition, the purchasing of a new auto or even a vacation.
• The HELOC is an excellent option for short-term financial needs.
• A home equity line of credit allows the borrower to have some flexibility when it comes to repayment since the borrower is only repaying the amount which was borrowed.
• Home equity lines of credit lets you borrow only the amount that you need.
• HELOCs can be a good source for funds in case of emergencies

Cons

• Since the HELOC is considered to be a second mortgage, the rate is higher than a fixed-rate mortgage, making the loan somewhat riskier for lenders to recoup their investment.
• A higher interest rate means higher monthly payments.
• If you take out a home equity line of credit and fail to make your payments, then you put your home at risk for foreclosure.
• The interest on HELOCs is not the same as the interest on a primary mortgage.