Home Equity Line of Credit
Definition - What does Home Equity Line of Credit mean?
A home equity line of credit is a line of credit that a borrower obtains by offering up equity in his or her home to a lender as collateral for a loan. In the context of the law, the lender has a right to the equity in the home if the borrower does not pay the loan back
Justipedia explains Home Equity Line of Credit
A home equity line of credit is essentially a way for homeowners to use their home as a way to get credit quickly. This can be useful for people who need money to pay other bills. However, just as with other collateralized loans, home equity lines of credit can be risky. If the borrower fails to pay on time, he or she could lose his or her house. The more the home is worth, the more credit can be obtained by using it as collateral.
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