LiveSPX7,620-1.28%NDX29,127-1.41%US10Y4.961%+3.23%BTC76,816-1.24%ETH2,468-2.07%GOLD4,320-1.02%NVDA210.96-8.42%MSFT505.41+1.14%GOOGL349.39+3.23%
Advertisement
Glossary

HELOC

A credit line secured against your home equity.

A home equity line of credit lets you draw against the equity in your home during a draw period, usually ten years, then repay over a repayment period.

The rate is almost always variable and set as prime plus a margin, so the payment moves whenever the Federal Reserve moves.

It is cheaper than a card because the house is collateral — which is also exactly the risk: missed payments put the home itself in play.

Today, in real numbers

With prime at 6.75%, a HELOC priced at prime plus one point costs about 7.75% — roughly $323 a month in interest alone on a $50,000 draw.

See the prime rate page
Calculators
Related terms