Before you can consider looking at a HELOC, you need at least 20 percent equity in your home. If you bought your home through a program requiring only low minimum down payments, such as a Federal.
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Home Equity Loan Information -Facts About Using. – Discover – With a home equity line of credit (HELOC), you withdraw money as you need it up to a predetermined limit and repay the loan over a fixed term and typically with a variable interest rate that may increase over time.