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
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your house might be worth 500k; and you have paid off 300k of that; giving you 300k equity in your home.
you can go to the bank and say “using this house as collateral, can you give us a line of credit”
the bank will then run some calculations and say “we have reviewd the property and your financial history; if you agree to our terms we will loan you some money”
the loan might have an interest rate of 10% or higher
failure to repay the loan might mean losing your house
consider the HELOC an additional credit card payment or another mortgage payment to be made
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