HELOC
HELOC is an abbreviation of Home Equity Line of Credit. This refers to a loan in which the lender agrees to lend a maximum amount within an agreed period. This differs from standard loan in that the borrower is not advanced the entire sum up, but used the line of credit to borrow sums that total no more than the amount. For example, with a HELOC of $100,000 over a six year period, the borrower could draw $50,000 immediately, then draw an additional $20,000 in the second year, and $30,000 in the last year.
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