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

To start the funds from a home equity loan are disbursed in one.

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. A heloc often has a lower interest rate than some other common types of loans and the interest may be tax deductible. 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. Unlike the continuous line of credit that comes with a heloc home equity loans work in much the same way as your first mortgage.

With a chase home equity line of credit heloc you can use your home s equity for home improvements debt consolidation or other expenses. As collateral your home is what is used as security for the loan. 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.