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What is a Home Equity Line of Credit (HELOC)?
Another of the two kinds of second mortgages (the other being a home equity loan), this one creates a line of credit based on a home's equity.Like a credit card, a credit limit is established. As the borrower uses the credit to get cash, goods, and services, those amounts must be paid back with interest (which can be tax deductible), within a scheduled time (term).
However, a HELOC is not a credit card, despite their similarities. Unlike a credit card that typically doesn't "expire," a HELOC often has a limited number of years with which it must be used.
Likewise, a HELOC also has a fixed time term within which it must be paid back.
Next: Would you like to experiment with a home equity calculator or to be matched with up to five home equity and second mortgage lenders?
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