Finance
What is a 'home equity line of credit' (HELOC)?
AA fixed loan secured by the property for a specific purpose
BA revolving line of credit secured by the borrower's home equity, with variable interest rates✓ Correct
CA government grant for home improvements
DA loan guaranteed by a home warranty company
Explanation
A HELOC is a revolving credit line secured by the borrower's home equity, similar to a credit card. Borrowers can draw, repay, and redraw funds up to the credit limit during the draw period, typically at variable interest rates.
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