What is a heloc?

Interesting Question?   (3)   (7)

Answers (1)

10th Nov 2009 by Michael Haltman

Simply put, a HELOC or home equity line of credit is a way to tap into the equity that you may have in your house. Different from a mortgage in that you don't get a lump sum of money, but rather the ability to write checks up to a certain amount.

If your house is worth $1,000,000, and you currently have a $300,000 mortgage on it, a bank may give you a HELOC, or home equity line of say $500,000. This would mean that the $300,000 first mortgage and $500,000 credit line brings the lien against the house to $800,000, or 80% of the homes value.

This is generally the maximum that a lender would feel comfortable lending. You can then write checks and pay only for the money that you have borrowed.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of

8th Nov 2009 In Finance 1 Answers | 571 Views
Subjects: heloc,

Answer This Question / Give Your Opinion
What is a heloc?

Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *

Give Your Opinion
Who provides the cheapest car insurance in Australia?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
Who provides the cheapest car insurance in Australia?
Ask A Question
Get opinions on what you want to know:
Specific to any country?