Home equity line of credit HELOC

Definition

A mortgage set up as a line of credit against which a borrower can draw up to a maximum amount, as opposed to a loan for a fixed dollar amount.

For example, using a standard mortgage you might borrow $150,000, which would be paid out in its entirety at closing.

Using a HELOC instead, you receive the lender’s promise to advance you up to $150,000, in an amount and at a time of your choosing.

You can draw on the line by writing a check, using a special credit card, or in other ways.

See What Is a HELOC and How Do You Shop For a HELOC?

Related Terms

Other terms related to 'Home equity line of credit HELOC' starting with the letter 'H'

HUD1 form, Homebuyer protection plan, Home Equity Conversion Mortgage HECM, Home Keeper, Historical scenario

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