Finance
In New York, a 'HELOC' (home equity line of credit) is typically a:
AFirst mortgage with a fixed rate
BSecond mortgage (subordinate lien) on the borrower's property with a variable interest rate based on an index✓ Correct
CUnsecured personal line of credit
DGovernment-backed loan for property improvements
Explanation
A HELOC is typically secured by a second mortgage (subordinate to the first mortgage) on the borrower's property. It is a revolving line of credit with a variable interest rate (usually pegged to the prime rate).
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