Home Equity Line of Credit (HELOC)

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Definition of “Home Equity Line of Credit (HELOC)” :

A Home Equity Line of Credit (HELOC) is a type of loan where a homeowner uses the equity in their home as collateral. It’s a revolving line of credit, allowing borrowers to access funds up to a set limit as needed, rather than receiving a lump sum. Interest is only paid on the amount used. This type of loan is not common in South Africa, where second mortgages or further loans are more typical.

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