Thursday, July 24th - What is a HELOC? Question: Can you explain what a HELOC is? (an also how to say it?) Answer: The term "HELOC" is an abbreviation meaning "home equity line of credit". It's pronounced "hell ock". In basic terms a HELOC is typically a second mortgage secured by your home. Instead of getting all the money up front, with a HELOC you have the right to make withdrawals against a line of credit. As you repay the money the line of credit is restored and you can again borrow from the account. Be aware, however, that HELOCs are not a big piggy bank: If payments are not made the loan can be called and your property can be foreclosed. =========================

Published: July 24, 2008

Use of this article without permission is a violation of federal copyright laws.