A home equity line of credit (HELOC) is a type of mortgage loan that acts similar to a credit card, except the line of available credit is tied to your home's equity. So instead of using funds advanced to you by a creditor, you use the cash from the value of your home.
HELOC Benefits
- Lower Interest Rates HELOC interest rates tend to be lower than personal loans or credit cards.
- You Only Pay For What You Use - You're charged interest only if you withdraw funds.
- No Closing Costs - HELOCs often have low or no closing costs, making them an attractive alternative for small loan amounts.
Applying For a HELOC
Similar to applying for a mortgage, there will be a credit review and a home appraisal. However, some lenders may only
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