HELOC
Home equity line of credit
Example
I want to remodel the kitchen so we might apply for a HELOC
I would just wait until you have the money to pay for the renovation out of your pocket
Related Slang
| APR | Annual percentage rate |
| APY | Annual percentage yield |
| CC | Credit card |
| Plastic | Credit card |
| EFT | Electronic funds transfer |
| EMV | Europay, MasterCard, and Visa |
| FICO | Fair Isaac Corporation |
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HELOC is an acronym for home equity line of credit, which is a line of credit based on the estimated value or amount of equity in a person's home. It is typically seen and used when a person needs to borrow money for home repairs or renovations. But HELOCs may also be used for other purposes, such as paying off credit cards, paying for college, or buying a car.
A HELOC can be applied for at a mortgage lender. A person will most likely be approved for a HELOC if he has equity in his home, decent credit, and enough income to afford monthly payments on the amount borrowed. Some of the benefits of HELOCs is they typically have low interest rates and there are no closing costs.