<p>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.&nbsp;</p><p><strong>Key Takeaways:</strong></p><ul><li>Most lenders require you to maintain at least 20% home equity after tapping it with a HELOC.</li><li>HELOC borrowers must also have enough income, a suitable debt-to-income ratio, and sufficient credit scores to qualify.</li><li>Getting a HELOC gives you more flexibility and lower interest rates than other financing options, such as a credit card.</li><li>If you use HELOC funds to buy, build, or remodel a home, interest paid on a limited amount of debt is tax-deductible.</li><li>Primary HELOC downsides include paying variable interest, reducing your home equity, and risking foreclosure if you’re unable to repay it.</li></ul><p><strong>Upcoming Wedding Series Coming Up:</strong> 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.&nbsp;</p><br><p>Discover more from Money Girl!</p><p><a href="https://www.facebook.com/MoneyGirlQDT" rel="noopener noreferrer" target="_blank">Facebook</a></p><p><a href="https://www.quickanddirtytips.com/money-girl-newsletterhttps://www.quickanddirtytips.com/newsletters" rel="noopener noreferrer" target="_blank">Newsletter</a></p><p>Transcripts available at <a href="https://www.quickanddirtytips.com/transcripts/money-girl/" rel="noopener noreferrer" target="_blank">QuickandDirtyTips.com</a>.</p><p>Email: <a href="mailto:[email protected]" rel="noopener noreferrer" target="_blank">[email protected]</a> or leave a voicemail: (302) 364-0308.</p><br><p><br></p><hr><p style='color:grey; font-size:0.75em;'> Hosted on Acast. See <a style='color:grey;' target='_blank' rel='noopener noreferrer' href='https://acast.com/privacy'>acast.com/privacy</a> for more information.</p>