Episode
Is a HELOC worth the risk?
- Podcast
- Money Girl
- Published
- May 15, 2026
- Duration seconds
- 879
- Processing state
not_requested
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Summary
1019. If you have enough home equity and not enough cash, you may wonder about taking a home equity line of credit (HELOC). Laura answers a listener’s question about whether taking a larger HELOC to pay for an expensive car repair and an upcoming wedding is a good or “horrible” idea. Key Takeaways: Most lenders require you to maintain at least 20% home equity after tapping it with a HELOC. HELOC borrowers must also have enough income, a suitable debt-to-income ratio, and sufficient credit scores to qualify. Getting a HELOC gives you more flexibility and lower interest rates than other financing options, such as a credit card. If you use HELOC funds to buy, build, or remodel a home, interest paid on a limited amount of debt is tax-deductible. Primary HELOC downsides include paying variable interest, reducing your home equity, and risking foreclosure if you’re unable to repay it. Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: [email protected] or leave a voicemail: (302) 364-0308. Discover more from Money Girl! Facebook Newsletter Transcripts available at QuickandDirtyTips.com . Email: [email protected] or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.