HELOC - HOME EQUITY LINE OF CREDIT​

HELOC 
Home equity line of credit, is a line of credit that works similar to a credit card. With this loan, you can borrow up to a specific limit of your home equity and repay the funds slowly over time. HELOCs typically have a draw period, or a period of time in which you can access the money. That’s followed by a repayment period where borrowing must cease and monthly principal and interest payments are required. With a 30-year HELOC, for example, you may be able to borrow against the equity in your home for up to 10 years before repaying all monies you owe, plus interest and fees, for the final 20 years of the loan. Note that, even though the initial period of your HELOC is called a draw period, you’ll still be required to make minimum monthly payments during that time.Borrowers can delay repayment in some cases or repay interest only during the draw period, and they can borrow as much or as little as they need, just like with a credit card. They can pay it back at the monthly minimum or in larger lump sums depending on their needs.