If you have a HELOC loan, you may wonder how your situation compares to that of other HELOC borrowers. The Consumer Bankers Association recently released it 2006 Home Equity Lending Study which provides some interesting insights:

• the average HELOC loan size is $42,158, up seven percent from a year earlier;
• the average size of new HELOC commitments is $84,813, up twelve percent in one year;
• the most common uses of HELOCs are: refinance debt (35%) and home improvements (25%);
• the loan-to-value ratio (LTV) for HELOC borrowers is getting betters: 42% had LTVs under 70%, compared to only 35% a year earlier
• The average credit score (FICO) for home equity borrowers in 2006 was 730, compared to 727 in 2005 and 726 in 2004

Also according to the study, HELOC borrowers are financially stronger than ever:

Average household income increased 9%, from $81,317 to $88,451, for new bookings. The average appraised home value increased 22%, from $276,964 to $337,735.

Clear answers to some commonly asked questions about HELOCs:

• What is a HELOC (home equity line of credit) loan?
• What do I look for in a home equity line of credit?
• What are the tax consequences of having a home equity line of credit?
• How does having having a home equity line of credit affect my credit score?
• Can a home equity line of credit be used to consolidate and pay-off my other debts?
• Are there times when a home equity line of credit shouldn’t be used?
• What about using home equity line of credit’s to buy stocks or other investments?
• Does it make sense to use a home equity line of credit to pay off a first mortgage?
• Can a home equity line of credit be used to start up a business?

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