HELOC

Home Equity Line of Credit

Also known as Home Equity Line. HELOC is a special type of credit line, secured by the equity in the borrower's home. With the home equity line of credit the lender sets a maximum amount that the borrower can draw, and the entire amount of the loan is not advanced in contrast with regular loans.

You can get a heloc up to 80% of your property value in first or second position. Some lenders allow a heloc only if they hold the first mortgage and some will allow a heloc in first position only.

Key components of a heloc

• The longest amortization of a heloc is 25 years

• The minimum payment is interest only calculated semi-annually

• Standard qualifying terms apply