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.