home equity line
House-backed credit
A home equity line of credit—usually abbreviated HELOC—is a revolving loan secured by the borrower's ownership stake in their home.
Unlike a fixed home equity loan, a line of credit lets you borrow as needed up to a limit, paying interest only on what you use: We tapped our home equity line to renovate the kitchen.
The credit line typically has a draw period followed by a repayment period.
- HELOCHome-secured revolving credit
- creditRecognition or payment deferral
- credit limitMaximum allowed debt
- second mortgageSubsequent lien on property
- cash outConvert assets to money
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- Home EquityHELOC, second mortgage, reverse mortgage, LTV, property value
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Unsecured debt on creditworthiness
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Debt using house as collateral
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