A HELOC, or home equity line of credit, is a type of loan in which the borrower uses the equity in their home as collateral. A HELOC allows a borrower to access funds as needed, up to a certain limit, and pay interest only on the funds that are actually borrowed. It is similar to a credit card in that it provides the borrower with a line of credit that can be used as needed, and the borrower can make payments on the amount borrowed as they pay down the debt. The interest rate on a HELOC is usually variable and is based on an index, such as the prime rate.
.realestate .banking .loans .debt .mortgages