What Is A Home Equity Line Of Credit And How Does It Work?
If you own a home, you've probably heard of a home equity line of credit before. However, these products can often be the something of a mystery, especially to those newer to homeownership. With that in mind, I've decided to put an end to the confusion once and for all. Below is your guide to home equity loans. It will cover what a home equity line of credit is, how it works, and how to qualify for one of your own.
What is a home equity line of credit?
A home equity line of credit, commonly abbreviated as a HELOC, is essentially a second mortgage that functions similarly to a credit card. It's a line of credit that allows you to borrow against the equity in your home, as needed. Typically, this type of credit is used to cover big expenses such as medical debt, home renovations, or financing a child's education.
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