Finance
A Pennsylvania home equity line of credit (HELOC) typically has which interest rate structure?
AFixed rate for the entire draw and repayment period
BVariable rate tied to an index (typically Prime Rate) plus a margin✓ Correct
CFixed rate during the draw period, fixed rate during repayment
DA rate set by PHFA annually
Explanation
HELOCs in Pennsylvania typically carry variable interest rates tied to the Prime Rate (or another index) plus a margin. During the draw period (often 10 years), borrowers pay interest on the balance drawn.
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