A home equity line of credit (HELOC) is a revolving line of credit secured by your home that offers a lower interest rate than a traditional line of credit. Through a HELOC, you can borrow up to 65% of the value of your home minus the outstanding balance of your mortgage. Note, however, that your mortgage balance + HELOC cannot equal more than 80% of the value of your home (meaning you must maintain 20% equity at all times).
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