A revolving line of credit that lets you borrow against the equity in your home. Like a credit card, a HELOC lets you borrow, repay and borrow again up to the credit limit. But unlike a credit card, which is not backed by an collateral, HELOCs are backed by your home – meaning that defaulting on a HELOC can result in foreclosure. Interest rates vary, but HELOCs typically charge lower interest rates than credit cards. See Home Equity, Home Equity Loan
Glossary
Home Equity Line of Credit
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