Home Equity Line of Credit
A Home Equity Line of Credit, or HELOC, is a way to borrow money by utilizing the equity in your home. It is a variable-rate loan that acts like a credit card. The borrower is approved for a certain limit and can withdraw money when needed. Payments vary based on how much money is withdrawn and the current interest rate. There is a set term, and the outstanding loan amount must be paid in full by the end of the term.