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One new innovative product in the home equity loan market is the *No Closing* home equity loan. These loans are a little different from traditional home equity loans, in the fact that they allow you to draw funds against the equity amount of your home. For example, you may be provided with a credit card or check book. The way to look at them is as a line of credit, you can use the line of credit when ever you need to, and in return for this the banks will charge you a little more interest than a traditional home equity loan.

One of the great things about a no closing home equity loan is that you only pay interest on the funds that you have used. So if you never use the line of credit, there is nothing to pay. Should you make a payment, you can decide to pay this back monthly (plus interest) or in one lump sum, similar to a credit card.

No closing home equity loans are becoming very popular loan products, mostly because of the flexibility they offer. There's also the added piece of mind, that should there be an emergency, that cash is available quickly to cover most eventualities.

Other popular reasons for a no closing home equity loan are for things that may involve random or unexpected costs such as home improvement projects or a student loan. Both of these activities require different levels of investment at different times, by being able to draw down the exact amount at exactly the time you need it, you will save money over the more traditional way of having all cash up front.