Home Equity Line of Credit (HELOC)
Home equity is when the difference between the amount you owe on the home and the assessed value. When you own a home for a few years, not only are you paying down the mortgage with your monthly payments, but your property may have appreciated in value over those years. This means that your home is worth more than what you paid for it and more than what you owe, giving you additional equity in the home.
By applying for a home equity line of credit you are securing the loan against your property and generally you will get a better interest rate than an unsecured loan.