Have you heard of a HELOC? It's like a special loan you can get using the extra money your home is worth. It lets you borrow money, a little or a lot, over time. Think of it as a flexible credit card, but secured by your house!
- You only pay interest on what you borrow during the first 10 years (draw period).
- After that (repayment period), you pay back the whole loan, including interest.
- You need good credit and enough home value to qualify.
| Feature | Details |
|---|---|
| Draw Period | 10 years, interest-only payments |
| Repayment Period | 10-20 years, full principal and interest |
| Interest Rates | Variable, usually lower than credit cards |
