Finance
A 'home equity line of credit' (HELOC) differs from a traditional second mortgage in that:
AA HELOC has a fixed interest rate throughout its term
BA HELOC is a revolving line of credit the borrower can draw upon as needed✓ Correct
CA HELOC does not use the property as collateral
DA HELOC requires a separate act of sale
Explanation
A HELOC is a revolving line of credit secured by the home's equity. Borrowers can draw funds, repay, and draw again (during the draw period), unlike a traditional second mortgage which is a lump-sum loan.
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