What Is A Home Equity Line of Credit?

A home equity line of credit (HELOC) is a revolving line of credit secured by your home.  The rate offered is lower than unsecured personal lines of credit.

The maximum loan-to-value(LTV) on a HELOC is 65% of the market value of your home.  Your mortgage balance plus your HELOC cannot be more than 80% of the value of your home.  You must maintain 20% equity at all times.

Not all lenders offer HELOC’s.