Home equity line of credit is a kind of revolving loan that is secured against the equity of your house. . It offers high credit limits, low fees and flexible repayment option. Due to low interest and payment flexibility of this loan, it can be a good source of financing for renovation and construction, debt consolidation, student tuition, as well as investment. It is also available in form of secured Credit card. Below are some of the features of HELOC.
- You will pay interest only on the balance of the loan not the whole amount you have approved for
- HELOC is an open loan, meaning that it could be used at any time, and it could be paid off at any time
- You only have to pay interest for your minimum payment.
- Moreover, it tends to have lower interest rates than most revolving accounts such as personal bank loans and credit cards