Day 1 real estate Q&A:
What is a HELOC
Home Equity Line of Credit
Received from your lender as a second lien on your property based on your equity in the property, can be used to pay down debts, renovate, or do whatever you want to with!
Straight from investopedia.com:
- Home equity can be a great source of value for homeowners to access cash for renovations, large purchases, or alternative debt repayment.
- Home equity loans and lines of credit are secured against the value of your home equity, so lenders may be willing to offer rates that are lower than for most other types of personal loans.
- A home equity loan comes as a lump sum of cash, often with a fixed interest rate.
- A home equity line of credit is a revolving source of funds, much like a credit card, that you can access as you choose.