HELOC (Home Equity Line of Credit)

Definition

A revolving credit line that lets you borrow against your home's equity, because apparently one mortgage wasn't enough debt.

Example Usage

We opened a HELOC to fund our kitchen renovation at a lower interest rate than a personal loan.

Origin

Modern financial instrument popularized in 1980s-1990s

Fun Fact

HELOCs typically have adjustable interest rates, meaning your payment can skyrocket if rates jump, unlike fixed mortgages.

Source: Banking and financial services terminology

Related Terms

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hard money loan

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phantom rent

The theoretical rental income from a vacant unit that's factored into pro forma projections but not actually being collected. It's the imaginary money that makes cap rates look better on paper than they are in reality.

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As-Is Sale

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phase 1 environmental

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net operating income

A property's annual revenue minus operating expenses but before debt service and taxes, the key metric for commercial real estate valuation. Abbreviated NOI, it's the number that makes or breaks whether your investment property is actually profitable.

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