Home Equity Line of Credit

Question

Thanks! I think there’s some key “point” that we’re missing after watching as many YT videos we can shake a stick at. How is one paid off? How is it measured? – thanks good people

In: Other

Answer 1

Think of it like another credit card. You can take (borrow) money out of it. You have a credit limit (equity), you have an interest rate, you have a monthly payment (based on the amount you borrow + interest). The interest rate is variable, but much lower than a credit card (which can be 20%+). Credit cards give you a ~30 day grace period, but interest is always calculated on a HELOC.