A Home Equity Line of Credit is a line a credit secured by your home as a second mortgage. A HELOC allows you to borrower against the available equity (the difference between what is owed on your mortgage and your home’s current market value) of your home up to 90% of the current value. As you repay your outstanding balance, the amount of available credit is replenished, much like a credit card. A HELOC generally carry much lower interest rates than credit cards. The funds from a HELOC can be used for many things such as, debt consolidation, home improvements, home additions, down payment for an investment property, starting a business and emergencies.
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