define home equity line of credit

For example, a home equity line of credit (HELOC) uses your home as collateral, meaning that defaulting on a HELOC can result in foreclosure-yikes. As a courageous DIYer, you might turn to credit.

Home Equity Lines of Credit : What Is Equity? In a home equity loan, a lender gives you one lump sum and you make the same payment every month until the loan is paid off. A line of credit differs in that it’s revolving, meaning you can use the money, pay it off, and use it again.

A home equity line of credit (often called HELOC, pronounced Hee-lock) is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower’s equity in his/her house (akin to a second mortgage).

Understand how a home equity line of credit (HELOC) works with BBVA. Avoid the confusion and contact us to learn more about your options.

Your statement contains a wealth of information about your account, how to contact us, as well as a glossary that defines key terms about your home equity line.

A home equity line of credit, or HELOC, turns your home’s value into cash you can borrow as needed. Find out if tapping equity with a HELOC is right for you and how to get the best rate. Use our.

Home equity line of credit (HELOC). Sometimes referred to as a HELOC, a home equity line of credit lets you borrow against the equity you’ve built in your home, usually by using a debit card or writing checks against your available balance.

Definition of home equity line of credit: A type of second mortgage in which money is taken in draws, rather than in one lump sum. lines of credit are often used to pay for education and home repairs or improvement projects.

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Home equity line of credit (HELOC) A HELOC works more like a credit card. You are given a line of credit that is available for a set timeframe, usually up to 10 years. This is called the draw period, and during this time you can withdraw money as you need it.