Finance
A Florida homeowner takes out a 'home equity line of credit' (HELOC). This is best described as a:
AFixed-rate second mortgage
BRevolving line of credit secured by the home's equity, with a variable interest rate✓ Correct
CGovernment-backed loan for home improvement
DFirst mortgage refinance
Explanation
A HELOC is a revolving line of credit secured by the borrower's home equity. It typically features a variable interest rate and allows the borrower to draw and repay funds during a draw period, similar to a credit card.
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