Finance
A home equity line of credit (HELOC) is best described as:
AA fixed-rate second mortgage for a lump sum
BA revolving line of credit secured by the home's equity✓ Correct
CAn unsecured personal loan using the home as collateral
DA government program for low-income homeowners
Explanation
A HELOC is a revolving line of credit secured by the borrower's home equity. Like a credit card, the borrower can draw funds as needed (up to the limit), repay, and redraw during the draw period. Interest is charged only on the outstanding balance.
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