Review:
Home Equity Lines Of Credit
overall review score: 4.2
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score is between 0 and 5
Home Equity Lines of Credit (HELOC) are loans in which the borrower uses the equity in their home as collateral. This allows homeowners to borrow funds at a lower interest rate compared to other types of loans.
Key Features
- Uses home equity as collateral
- Lower interest rates
- Flexibility in borrowing and repayment
- Revolving line of credit
Pros
- Lower interest rates than other types of loans
- Flexibility in borrowing and repayment
- Allows homeowners to tap into the equity of their homes
Cons
- Risk of losing home if unable to repay the loan
- Variable interest rates can increase over time