Our next virtual live session is Tuesday, Sep 21 @ 7pm ET / 4pm PT.

Register now
close site alert

Your Down Payment Can Double As A Credit Line

A home equity line of credit is a optional mortgage that gives a homeowner access to their original down payment and new home equity after a home's been bought.

Home equity line of credit is commonly abbreviated to HELOC (HEE-lock). HELOCs are protection against life emergencies, accidents, and disasters.

You can ask for one at the same time you apply for your loan.

HELOCs are mortgage loans that work like a credit card.

  1. You can spend money at any time for any reason
  2. You don’t pay interest when you don't have a balance
  3. You can spend as much as you want until your limit

Also, like credit cards, HELOCs are an emergency cash source. Using a check book or debit card, homeowners can use a home equity line of credit to pay for doctor bills, unexpected home repairs, or anything else.

Opening a home equity credit line is typically free, and annual fees rarely exceed $50. HELOCs are inexpensive insurance policy for hardships homeowners don’t expect.

You might never use your HELOC, but it’s a comfort to know it’s there. Use the chat to ask us your HELOC question anytime.

Dan Green

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He's appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

Subscribe to our Newsletter

Receive real estate and mortgage news by email weekly. Personalized for you & your specific homebuying goals.