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Turning a home equity line of credit into a trip to Disneyland (without magic!)

Date posted:  3/18/15 08:00:00 AM Plan a trip to Disneyland with the help of a home equity line of credit.

Families have enjoyed the marvels and magic of Disneyland since its opening in the summer of 1955. The massive amusement park was designed by Walt Disney and, according to, was intended to entertain and educate both children and adults.

Today, many families hope to make the trek to the West Coast and enjoy the fantastical park that has been adored for generations. Unfortunately, travel costs, lodging and park passes can add up quickly, making this dream vacation just a dream for some Americans. However, with the celebration of Disneyland's 60th anniversary this summer and a little planning, a family can enjoy a magical trip to this imagination haven without breaking the bank. 

Home Equity 101
Secret Entourage, a lifestyle publication, indicated if a homeowner has paid at least 20 percent of the value of a home, he or she has built equity. 

Furthermore, the less a homeowner owes a lender for the property, the more equity he or she has. Making the monthly payments on a mortgage builds valuable equity over time, which can be used by the homeowner toward various purchases or unexpected expenses. 

Cashing in home equity
According to Bankrate, homeowners can use home equity like a credit card. They can borrow up to a certain amount of money during the life of the loan, and once the loan is paid back the credit can be reused. For example, if an individual has access to $15,000 in home equity and he or she borrows $5,000, after paying back $1,000, the homeowner would then have access to $11,000. 

This cash is available to the homeowner because the actual property can be used as collateral until the borrower pays the loan. 

Benefits of a home equity line of credit 
With a home equity line of credit, a homeowner can receive a great deal on a loan. With a 15-year repayment period, interest rates lower than conventional loans and the ability to use the money toward anything, heading to Disneyland for the summer could be a very real possibility. 

Getting to Disneyland 
The Consumer Finance Protection Bureau suggested a homeowner should first speak with the lender and ask for help when applying for a home equity line of credit. 

The potential line of credit available to the homeowner is determined by a number of variables. Typically a lender will consider the following factors when deciding on your limit: 

  • Income 
  • Accrued debt 
  • Credit history 
  • Other financial obligations

Potential borrowers should work to improve their current credit score to increase access to a home equity line of credit. 

Have a payback plan 
While it's appealing to use the money to vacation at Disneyland for the experience of a lifetime, it is important to have an idea of how to best pay back the loan. Borrowers should create a detailed plan that addresses how long it will take to pay off the credit and where the payment funds will come from. 

In addition, it may be a good idea to consider using a home equity line of credit to fund only part of the trip rather than all. 

Other ways to save 
According to Undercover Tourist, a traveling blog, there are a number of ways you can save some money while planning a magical vacation. First and foremost, including the whole family in the trip-saving process makes it more impactful and effective, even for young children. Families can work together and put extra money in a special savings jar to help fund the adventure. Everything from loose change to whole allowances will help contribute to the trip of a lifetime, and reinforces money management for all involved.

Planning for lodging ahead of time, especially non-park lodging, and packing plenty of healthy snacks to take to the park can cut down on the overall cost. 

Start organizing for a special journey with the family with a home equity line of credit and a little thrifty planning.