What is HELOC?
A HELOC is a home equity line of credit, a revolving credit line secured by your home that you can draw from as needed, similar to a credit card.
A home equity line of credit, or HELOC, is a revolving credit line secured by your home. You can borrow up to a limit, repay, and borrow again during the draw period, then repay the outstanding balance during the repayment period. Borrowers use it for renovations, debt consolidation, or emergencies. Watch for variable interest rates that can rise, a possible balloon payment if the balance is not fully amortized, and the risk of losing your home if you cannot repay. Closing costs may be low or waived, but fees can apply. HELOCs are not ideal for every borrower, especially if income is uncertain.
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