Finance
In West Virginia, a 'home equity line of credit' (HELOC) differs from a home equity loan in that a HELOC:
AIs a lump-sum loan repaid in equal installments
BIs a revolving line of credit from which the homeowner can draw and repay repeatedly during the draw period✓ Correct
CCannot be used for home improvements
DHas a fixed interest rate for the life of the line
Explanation
A HELOC is a revolving credit line secured by the home's equity. The borrower can draw funds as needed during the draw period, repay, and draw again, similar to a credit card. It typically has a variable interest rate.
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