02 Aug Should I keep my unused home equity credit line alive?

Q. My home equity line of credit, which has a zero balance, is soon to expire. I have never used it. Should I reapply so I have it as an emergency fund?
— Homeowner

A. That’s a great question.

We love the idea of having an available pool of money, especially if it doesn’t cost you anything today.

Keeping an emergency fund is an important piece of everyone’s financial plan, said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.

“A high yield savings account is often the primary source of funds for the unexpected and unanticipated things that can arise in life,” she said. But, if the extra cash isn’t available to be tucked away in a savings account, a home equity line of credit or HELOC is often a good option.”

The HELOC will give you access to cash if you need it and that can provide peace of mind in the event of a major expense, she said.

“Be sure you understand what fees might be involved in reapplying and whether there are any maintenance fees for the line of credit especially if you don’t plan to use it,” she said.

Good luck to you.

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This story was originally published in August 2026. 

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.