Finance
A home equity line of credit (HELOC) differs from a home equity loan in that a HELOC:
AProvides a lump sum at a fixed interest rate
BProvides a revolving line of credit the borrower can draw on as needed✓ Correct
CDoes not use the home as collateral
DHas a fixed repayment schedule from the beginning
Explanation
A HELOC is a revolving line of credit secured by the home's equity, allowing the borrower to draw funds as needed during the draw period. A home equity loan provides a lump sum at a fixed rate with scheduled repayments.
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