Finance
A home equity line of credit (HELOC) is best described as a:
AFixed-rate second mortgage
BRevolving line of credit secured by the equity in a home✓ Correct
CLoan to purchase investment property
DGovernment-sponsored affordable housing loan
Explanation
A HELOC is a revolving line of credit secured by a home's equity. Borrowers can draw funds as needed up to a credit limit, repay, and draw again — similar to a credit card secured by real estate.
Related Georgia Finance Questions
- A 'buydown' mortgage involves:
- A 'hard money loan' is typically characterized by:
- An 'interest rate cap' on an adjustable rate mortgage (ARM) limits:
- A 'wraparound mortgage' in Georgia is a type of seller financing where:
- A 'straight-term' or 'interest-only' mortgage requires the borrower to:
- A 'jumbo loan' in Georgia is one that:
- What does 'LTV ratio' stand for and what does it measure?
- An 'interest rate cap' on an ARM mortgage limits:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →