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If you want to borrow some money to consolidate funds or purchase a big-ticket item, a home equity line of credit (HELOC) might help. A type of revolving credit, a HELOC is secured by your home equity. This open-ended loan can be charged up or paid down during the loan term. The rate of interest can fluctuate (typically every month).
Your lender will set your credit limit (the highest amount you can borrow) with the HELOC. Your credit history, salary, debt and other financial circumstances can affect your credit limit. You are required to schedule a home appraisal to determine your home's current market value. Your property's current value, subtracted from your remaining mortgage loan balance will help to set your particular credit limit.