Finance
Which of the following best describes a home equity line of credit (HELOC)?
AA fixed-rate second mortgage with a lump-sum disbursement
BA revolving credit line secured by the equity in the borrower's home✓ Correct
CAn unsecured personal loan based on home equity
DA government-backed loan for home improvements
Explanation
A HELOC is a revolving line of credit secured by a lien on the borrower's home equity. Borrowers can draw funds as needed up to a credit limit during the draw period and repay over the repayment period.
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