Home Equity Line of Credit (HELOC)

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What is a home equity line of credit (HELOC)?

Home Equity Line of Credit Definition: Home equity lines of credit, or HELOC, is a loan secured against a borrower’s property or home. A HELOC is basically a loan taken against the equity on a home, the value of which is the difference between a home’s current market value and a mortgage loan.

If a homeowner has made enough payments towards their mortgage so that they have sizable equity, they can usually borrow up to 80% or 85% of this total. When a HELOC is approved, the home is considered collateral, and the home equity line of credit can be used to finance renovations, pay off credit cards, and other unsecured debt.

Home Equity Line of Credit (HELOC)

What is a home equity line of credit (HELOC)?

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