If you need to borrow money to pay off debts or make a major purchase, a home equity line of credit (HELOC) can be useful.A HELOC is a form of revolving credit secured by the equity in your home.This is an open-ended loan that can be paid down or charged up for the term of the loan, much like a credit card.The interest rate fluctuates (typically monthly).
With a HELOC, your lender will approve you for a specific amount of credit – the maximum amount you may borrow at any one time under the plan.In determining your credit limit, your income, debts, credit history and other financial obligations will be reviewed.
Most HELOC’s have a fixed period during which you can borrow money.You will be required to make a minimum payment each month.However, the interest you pay is usually tax deductible.
