Finance
A Texas HELOC (Home Equity Line of Credit) is a:
AFixed-rate loan with a fixed payment schedule
BRevolving line of credit secured by home equity with a variable rate and draw period✓ Correct
CGovernment-guaranteed loan program
DInstallment loan for home improvements only
Explanation
A HELOC is a revolving line of credit secured by the borrower's home equity. During the draw period, the borrower can draw funds up to the credit limit and typically pays interest-only. During the repayment period, the line is closed and the balance is repaid.
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