HELOC
Business & Finance abbreviation · Real Estate & Mortgage
| Stands for | Home equity line of credit |
|---|---|
| Categories | Business & Finance |
HELOC stands for Home equity line of credit, a real estate & mortgage abbreviation.
Revolving credit line secured by a home, letting the owner borrow against equity as needed during a draw period, typically 10 years, followed by a repayment period of up to 20 years. Rates are usually variable and tied to the prime rate.
Example: We opened a HELOC to fund the kitchen remodel and draw on it as invoices come in.
Usage notes
Pronounced "HEE-lock." Interest is federally deductible only when the money is used to buy, build or substantially improve the home securing the loan. Because the home is collateral, failure to pay can lead to foreclosure, and lenders may freeze or cut lines when home values fall, as many did in 2008. The fixed-amount alternative is a home equity loan.
Related abbreviations
More real estate & mortgage abbreviations
- GNMA – Government National Mortgage Association
- GRI – Graduate, REALTOR Institute
- GRM – Gross rent multiplier
- GSE – Government-sponsored enterprise
- HECM – Home Equity Conversion Mortgage
- HEL – Home equity loan
- HOA – Homeowners association
- HUD-1 – HUD-1 Settlement Statement
- HWF – Hardwood floors
- IDX – Internet Data Exchange
- IO – Interest-only
- JTWROS – Joint tenants with right of survivorship