What is a Home Equity Line of Credit HELOC?

What is a Home Equity Line of Credit HELOC?

Ron Goodlin (Mortgage Banker and Broker, The Goodlin Group) gives expert video advice on: What is a Home Equity Line of Credit HELOC?; What is a negative amortization loan and is it a good way to lower my monthly payments?; How do I apply for a Home Equity Line of Credit HELOC? and more...

A Home Equity Line of Credit is a second mortgage, which means it is behind your first mortgage that you have on your home. In the simplest terms, look at a line of credit as a large credit card. Let's say you take out 1,000 dollar line of credit; you only pay interest on it when you actually use the line of credit, just like a credit card. Also, the line of credit is adjustable, so it can move up or down.