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A home equity line of credit or HELOC is a mortgage loan, usually in second mortgage, allowing a borrower to obtain cash against the equity of a home, up to a predetermined amount.
The home equity line of credit is secured by the equity in a consumer’s home. It can be used for home improvements, debt consolidation, and other major purchases. Interest paid on the loan is generally tax-deductible (consult a tax advisor to be sure). The funds may be accessed by writing checks against the line of credit or by getting a cash advance.
