A home equity line of credit (HELOC) is a type of mortgage loan that acts similar to a credit card, except the line of available credit is tied to your home's equity. So instead of using funds advanced to you by a creditor, you use the cash from the value of your home.

HELOC Benefits

• Lower Interest Rates  HELOC interest rates tend to be lower than personal loans or credit cards. 
• You Only Pay For What You Use - You're charged interest only if you withdraw funds. 
• No Closing Costs - HELOCs often have low or no closing costs, making them an attractive alternative for small loan amounts. 

Applying For a HELOC 

Similar to applying for a mortgage, there will be a credit review and a home appraisal. However, some lenders may only