Heloc Calculator Reveals Surprising Borrowing Power Secrets
The Mechanics of HELOCs
HELOCs function similarly to a credit card, offering a revolving line of credit secured against your home. Unlike traditional loans, you only pay interest on the amount you draw, making it a flexible option for managing expenses such as home renovations, debt consolidation, or unexpected emergencies. The interest rates on HELOCs are typically variable, which means they can fluctuate based on the market conditions, but they often remain lower than unsecured credit options1.