What is a home equity line of credit (HELOC)?
A home equity line of credit (HELOC) is a type of loan that allows you to borrow money using the equity in your home as collateral. It is similar to a credit card in that you are given a line of credit that you can draw from as needed, up to a certain limit. You can use the money from a HELOC for a variety of purposes, such as home improvements, debt consolidation, or other major expenses.
One of the main benefits of a HELOC is that it typically has a lower interest rate than unsecured forms of credit, such as credit cards. This is because the lender has the added security of your home as collateral. However, it is important to keep in mind that if you default on a HELOC, you could lose your home through the foreclosure process.
To qualify for a HELOC, you typically need to have a good credit score and a reasonable amount of equity in your home. The lender will also consider your income, debts, and other financial factors when determining your eligibility for a HELOC.
Do you want to see if you qualify?
Apply for a Heloc – kevinbrierton.com/apply