Finance
In Hawaii, which statement about home equity lines of credit (HELOCs) is TRUE?
AA. HELOCs are fixed-rate loans with no credit limit changes
BB. HELOCs are revolving credit lines secured by home equity, typically with variable rates✓ Correct
CC. HELOCs can only be used for home improvements
DD. HELOCs require the same underwriting as a first mortgage
Explanation
A HELOC is a revolving line of credit secured by the borrower's home equity, typically with a variable interest rate tied to the prime rate. Funds can be drawn and repaid as needed.
Related Hawaii Finance Questions
- In Hawaii, the 'note' in a mortgage transaction is:
- What is 'title examination' and why does it occur before a Hawaii lender funds a mortgage?
- In Hawaii, what does it mean when a mortgage is 'current' vs. 'delinquent'?
- In Hawaii, what is the purpose of a 'hypothecation' in real estate financing?
- In Hawaii, which type of loan has an 'interest rate cap' limiting how much the rate can increase per adjustment period?
- In Hawaii, what is a 'borrower's credit score' (FICO score) and how does it affect mortgage terms?
- In Hawaii, what is a 'shared equity mortgage'?
- In Hawaii, what is a 'non-conforming loan'?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →