HELOC

A Home Equity Line of Credit (HELOC) is a flexible loan option for homeowners that allows them to borrow against the equity in their homes. Unlike a traditional loan, a HELOC provides a revolving line of credit, similar to a credit card, which homeowners can draw from as needed, up to a predetermined limit. This financial tool can be particularly useful for funding home improvements, consolidating debt, or covering unexpected expenses, as it often offers lower interest rates compared to other forms of credit. However, it's important for homeowners to manage their HELOC responsibly, as it uses their home as collateral, and failure to repay can result in foreclosure.