I have a very recent mortgage. I only have about 7% of equity on the home. I've made about 5 payments so far and everything is going smoothly.
Now I have a family emergency requiring me to borrow some money. I thought about using a service like Lendingclub or Prosper. But I've been thinking if it's a good idea to do a HELOC (Because I can have continuous access to the credit line, lower rates, ability to deduct taxes on interest paid etc).
So, I have a few questions about HELOC
I have the mortgage from Lender A. Can I get a HELOC from Lender B?
Do banks pull my credit to approve a HELOC account?
How is it reported to the credit bureaus and how does it affect my credit (Let's say my limit is $30k and I use all of $30k)?
Anything unique about it's tax deduction?
Anything else to watch out for?