Loanfactz Definitions
Glossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
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Home Equity Line of Credit - HELOC
A Home Equity Line of Credit, known as a HELOC, is an * open end line of credit you use to borrow against the * equity in your home, which requires you to use your home as * collateral. Most loan amounts are limited to 75 or 80 per cent of the appraised value. Withdrawals can be made at any time with the guidelines. More about Home Equity Line of Credit
Glossary For This Page
(In Alphabetical Order)
* Collateral
Property which is pledged as security for a debt. In the case of a mortgage, the collateral would be the land, the house, and other buildings and improvements.
* Equity
Equity is the difference between the market value of your property and home, and the claims held against it. If you owe $100,000 on your house but it is worth $130,000, you have $30,000 of equity.
* Open End Line of Credit
A line of credit that may be used repeatedly, including home equity lines, credit cards and overdraft credit accounts.
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