What Is A Home Equity Line Of Credit And How Does It Work

A home equity line of credit or heloc is a second mortgage that gives you access to cash based on the value of your home.

What is a home equity line of credit and how does it work.

A home equity line of credit also known as a heloc is a line of credit secured by your home that gives you a revolving credit line to use for large expenses or to consolidate higher interest rate debt on other loans footnote 1 such as credit cards. You can draw from a home equity line of credit and repay all or some of. A home equity line of credit is a loan that that helps you fund a long term project by allowing you to withdraw varying amounts of money at different times. As collateral your home is what is used as security for the loan.

A heloc often has a lower interest rate than some other common types of loans and the interest may be tax deductible. To start the funds from a home equity loan are disbursed in one. With a chase home equity line of credit heloc you can use your home s equity for home improvements debt consolidation or other expenses. Before you apply for a heloc see our home equity rates check your eligibility and use our heloc calculator plus other heloc tools.