Home equity loan – HELOC
A home equity line of credit, or HELOC, allows you to borrow money using your home equity as collateral. HELOC’s are variable rate loans so be sure to familiarize yourself with a manageable rate.
Of all the lending products available in the market Home Equity Lines of Credit can be the most intricate and confusing. In this case we will provide a summary to ensure simplicity and conciseness.
Home Equity Lines of Credit (HELOCs) Simplified
There are two main types of HELOCs: one combined with a mortgage and another as a stand-alone product.
1. HELOC Combined with a Mortgage:
Stand-alone HELOC:
Home Equity Loans:
Qualifying for a HELOC:
Advantages and Disadvantages: