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

With a chase home equity line of credit heloc you can use your home s equity for home improvements debt consolidation or other expenses.

What is a home equity line of credit and how does it work.

You can draw from a home equity line of credit and repay all or some of. Unlike the continuous line of credit that comes with a heloc home equity loans work in much the same way as your first mortgage. To start the funds from a home equity loan are disbursed in one. In our example you could borrow up to the maximum 100 000 during the 10 year draw period making interest payments on the balance.

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. As collateral your home is what is used as security for the loan. 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. Before you apply for a heloc see our home equity rates check your eligibility and use our heloc calculator plus other heloc tools.