What is Home Equity Line of Credit?

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Accepted Answer

A Home Equity Line of Credit (HELOC) is a type of loan that allows homeowners to borrow money using the equity in their home as collateral. This type of loan typically has a variable interest rate and allows homeowners to access funds as they need them, similar to a credit card. This is why it is also called a home equity line of credit. With a HELOC, homeowners can borrow money up to a certain limit and only pay interest on the amount they borrow. This type of loan is often used for home improvements, debt consolidation, or other large expenses.

Real Estate Glossary

What is Home Equity Line of Credit?