A mortgage loan similar to the home equity loan but provides a credit line instead of a lump-sum loan. The borrower receives a check book—instead of a single check—and can make several disbursements against the credit line. The HELOC is assessed interest charges based on the current loan amount. The HELOC acts similar to credit cards, but its interest can be tax-deductible because it is considered a home mortgage loan. For more information, see the "Home Equity Lines of Credit" article in the "Loan Programs" section.
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