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2007-06-28 09:42:10 · 4 answers · asked by Dee f 1 in Business & Finance Credit

4 answers

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.

2007-06-28 09:51:31 · answer #1 · answered by Anonymous · 0 0

HELOC stands for Home Equity Line Of Credit. It operates a bit like a credit card in that you have a high limit you can borrow up to and you only pay interest on what is owed. As you pay it down you can reborrow up to the limit again. Usually this is an ARM and those rates have gone up significantly.

2007-06-28 16:51:29 · answer #2 · answered by thinking-guru 4 · 2 0

HELOC is a line of credit for whatever you real estate property has gone in value or what you no longer owe on such property. For example.
Your house is worth $500000.00
Your mortgage balance is 400000.00
You've got 100000.00 of equity.


HELOC is not a "home equity loan" in other words.

HELOC is a revolving line of credit where you may borrow and pay back.
HELOAN its a istallment loan. You borrow whatever amount you need, but once you pay it back it s not available for reborrowing.

2007-06-28 21:12:56 · answer #3 · answered by V 3 · 0 0

It's a HELOC, not a helock. HELOC stands for Home Equity Line of Credit. In other words, a home equity loan.

2007-06-28 16:46:21 · answer #4 · answered by acermill 7 · 0 0

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