House Equity Credit Line (HELOC) Discussed. A Home Equity Line of Credit (HELOC) is actually a mortgage that allows a resident to view the equity within their home via a credit line.
A HELOC is typically the second lien financial, enjoys a varying interest, and it has an adjustable loan balance.
A HELOC allows a homeowner to obtain cash on her homestead via “draws” for a certain duration of the loan’s existence. Consider it like a credit card that is tied to the home’s assets – the balance can be energized up and next reduced anytime.