Home Equity Line of Credit or HELOC’s and Home Equity Loans are typically a second lien or junior lien against the property to the first mortgage. A HELOC works much like a credit card except the line of credit is determined by the equity established in your home. You can use the equity up until the draw period expires or the equity is extinguished.
A Home Equity Loan also taps into equity in the property or can be used to help offset down payment in a purchase. Unlike a HELOC, you cannot reuse the Loan as you pay down the balance of the mortgage.
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