Definition of Home-Equity Line of Credit (HELOC):
Orange County HELOC:
A Home-Equity Line of Credit (HELOC) is by definition an adjustable rate mortgage and it allows a home-owner to borrow money for any purpose (legal), using the equity the home as collateral for the loan. HELOCs can take the form of a second or even a third mortgage, with the borrower withdrawing and repaying funds on a more flexible schedule – most lenders give the borrower the option of making an interest only payment and as the case with most mortgages the IRS allows a tax deduction for interest payments. Many times lenders make a HELOC to a borrower without a full appraisal using an AVM instead, and using a limited title instead of a full Orange County ALTA policy, saving the client money.