From the first day you purchase your home, the value of that property has a stored equity amount based upon your initial cash down payment. As time progresses, and as the value of your property increases, the stored wealth in your home continues to remit value. 

Often times, that value remains untapped as homeowners live out their time in that home. Usually, this accrued value never sees the light of day until the sale of the home ensues. In most cases, the accrued value is then automatically converted into the down payment of the next home purchased. 

Recently, homeowners have begun to realize that the accrued value in their home can be accessed through a program called a Home Equity Line of Credit. This program allows a qualified homeowner to secure a liquid amount of cash in a checking account using the accrued wealth in their home as collateral. 

The best part about a program like this is that interest and principle are never paid on this cash reserve until the homeowner actually writes a check from their Home Equity Line of Credit account.

So in effect, any homeowner can, at any point in time, apply for a Equity Line of Credit and have their wealth held securely in a checking account, and never pay any interest on it until they use it.

Why would a homeowner do this? For starters, consider the convenience of having these funds available to you in case emergency? Consider paying off credit card debt. College tuition. A new car. Remodeling. Or buying a vacation home or an income property creating a second opportunity for building wealth. 

The information presented here is for informational purposes only and should not be interpreted as tax, legal, or investment advice. Individual cases are all different, so this information should be used only in conjunction with the appropriate professional advice.