The Pros and Cons of Opening a Home Equity Line of Credit Without Using It
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Taking out a HELOC but not using it means you won't owe interest or make payments until you draw funds.
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An unused HELOC provides continual access to a credit line for emergencies or planned expenses.
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Even with an unused HELOC, you may still owe annual, inactivity, or cancellation fees.
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Opening but not using a HELOC means paying application and closing costs for no reason.
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An unused HELOC can provide financial flexibility but requires responsible management to avoid becoming a burden.