Investor Glossary-home equity line of creditInsightful stock market charts - Click here

 # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z     
Term of the Day Email this Definition Link to this Definition

Home Equity Line Of Credit


A home equity line of credit is a credit line against an owner’s home equity. Based on credit-worthiness, lenders may approve up to 80% of the appraised value of the home minus any mortgage owed, as a home equity line of credit at variable interest rates. A large initial draw is allowed from the home equity line of credit. The lender issues checks or a credit card for home equity line of credit withdrawals. The draw period for a home equity line of credit is usually 5, 10, or 15 years. A home equity line of credit may incur application, title search, appraisal, attorney, points, and participation fees. Being that the borrower's house is the collateral in a home equity line of credit, it may be at risk if the borrower miss repayments. Truth in Lending Act allows a borrower to cancel a home equity line of credit within the first three days for a full refund of fees paid.

Rate this home equity line of credit definition...

               


Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close


Home | Term of the Day | Tell a Friend | Suggest a Term | Edit Subscriber Detail
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2009 Investor Glossary - All rights reserved - Terms of Use