Whats a home equity line of credit – Unlike a home equity loan which involves borrowing a fixed lump sum amount a. A home equity line of credit or heloc is a secured loan backed by your home.
A home equity line of credit also known as a heloc is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher interest rate debt on other loans footnote 1 such as credit cards.
Whats a home equity line of credit – What is a home equity line of credit. It s a line of credit that allows you to borrow against. A heloc is a line of credit that s based on the available equity in your home. Whats a home equity line of credit
A home equity line of credit or heloc pronounced he lock is a loan in which the lender agrees to lend a maximum amount within an agreed period called a term where the collateral is the borrower s equity in their house akin to a second mortgage. Heloc funds can be used to remodel your home pay for college or even take vacations. A heloc often has a lower interest rate than some other common types of loans and the interest may be tax deductible. Whats a home equity line of credit
Instead of taking out a lump sum borrowers are given access to a credit line similar to how a credit card works and only charged interest on the amount they use. A home equity line of credit commonly abbreviated as a heloc is essentially a second mortgage that functions similarly to a credit card. Whats a home equity line of credit