HELOC (Home Equity Line of Credit)

A Home Equity Line of Credit (HELOC) is a flexible loan option that allows homeowners to borrow against the equity in their home. Equity is the difference between your home's current market value and the amount you owe on your mortgage. With a HELOC, you can access funds as needed up to a certain limit, similar to a credit card, and you only pay interest on the amount you borrow. This can be useful for home improvements, debt consolidation, or other expenses. The loan typically has a draw period followed by a repayment period where you'll pay back the borrowed amount.