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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

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Last updated: Sun, Nov 24, 2024, 12:16:30 AM UTC