Glossary

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There are 1 names in this directory beginning with the letter H.
Home Equity Line of Credit (HELOC)
This is a line of credit secured against real estate and it can either be the primary loan, registered in 1st place or it can be postponed behind the 1st mortgage loan. A HELOC can either be from the same lender as the 1st mortgage or from a different lender. A HELOC is different from a mortgage since the entire sum of funds doesn’t have to be advanced upfront to the borrower, but uses a line of credit where the borrower can draw funds as required as long as the credit limit of the HELOC is not exceeded. HELOCs are higher risk real estate lending products and are typically interest only, at higher than mortgage variable interest rates.