Function

• A HELOC allows a homeowner to use the equity, amount of ownership, in their property to get a credit line they can access as needed for monetary obligations.
  
  

Features

• Instead of getting a large loan, on which interest is due immediately, homeowners can borrow portions of their HELOC, as they need money, often saving many interest dollars.
  
  

Time Frame

• Unlike a first mortgage, which can take four to six weeks to close, a HELOC can be approved and closed within one to two weeks.
  
  

Types

• HELOC's typically provide access to loan funds by having the borrower access a special checking account created by your lender, or just writing a regular check, after which the lender funds the homeowner's account with loan proceeds.
  
  

Benefits

• Homeowners receive low interest funds quickly, and can make improvements or repairs to their property and meet financial obligations, using their equity.