Home Equity Line of Credit — a revolving credit line secured by your home equity.
A HELOC works like a credit card backed by your house: draw what you need, pay interest only on what you use. Rates are variable, and your home is the collateral.
Example: 85% of a $500,000 home minus a $300,000 mortgage supports a $125,000 line.
FAQ
What is HELOC in simple terms?
A HELOC works like a credit card backed by your house: draw what you need, pay interest only on what you use. Rates are variable, and your home is the collateral.