Introduction to HELOCs

A Home-Equity Line of Credit, or a HELOC, is a loan that use a borrower’s home as collateral. It appears as if they are making a comeback. With this type of variable-rate loan, homeowners can draw money at their discretion. However, in an effort to lower their risks in making the loans, banks have instituted some restrictions. First, getting a HELOC typically requires a credit score North of 700. As with access to credit in other formats, a good credit score is essential. Second, many banks have instituted curtailment clauses. Read the Full Story