Review:
Home Equity Line Of Credit (heloc)
overall review score: 4.2
⭐⭐⭐⭐⭐
score is between 0 and 5
A Home Equity Line of Credit (HELOC) is a type of loan in which the borrower uses their home's equity as collateral to access a line of credit for expenses such as home improvements or debt consolidation.
Key Features
- Uses home's equity as collateral
- Flexible borrowing limits
- Interest-only payments during draw period
- Variable interest rate
Pros
- Flexibility in borrowing
- Lower interest rates compared to other types of loans
- Interest may be tax deductible
Cons
- Risk of losing home if unable to repay loan
- Variable interest rates can lead to higher payments over time