Finance
Which type of loan allows the borrower to periodically draw from an approved credit limit secured by their home equity?
AA reverse mortgage
BA construction loan
CA home equity line of credit (HELOC)✓ Correct
DA wraparound mortgage
Explanation
A HELOC (Home Equity Line of Credit) is a revolving line of credit secured by the borrower's home equity. The borrower can draw funds as needed up to the approved limit, repay them, and draw again.
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