What is a Home Equity Line of Credit (HELOC)?
A home equity line of credit (or HELOC for short) is a revolving amount of credit that’s secured against your home. During the HELOC application process, the lender will decide on the amount of your HELOC.
Lenders allow total loans (mortgage plus HELOC) of up to 80% of your home’s value. So, if your home is worth $500,000 and your mortgage is $200,000, your HELOC could be as much as $200,000. You can draw from that money at any time, for any reason.
You only make payments once you owe money and will have to make at least monthly interest...