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What is a HELOC?

Quick answer

A HELOC (home equity line of credit) is a revolving credit line secured by your home equity, with a variable rate that follows the Prime rate. Unlike a cash-out refi, it preserves your original mortgage. Best for ongoing renovations or as a backup line of credit.

More context

A HELOC (home equity line of credit) is a revolving credit line secured by your home equity, with a variable rate that follows the Prime rate. Unlike a cash-out refi, it preserves your original mortgage. Best for ongoing renovations or as a backup line of credit. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

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