Wait. What is a HELOC again? It is a H ome E quity L ine o f C redit. Basically, it is a loan that establishes a line of credit (amount you can borrow) based on the equity in your home. In the end, it functions very similar to a credit card. You borrow the amount you choose for the purposes you choose when you choose to, with no impact on your current first mortgage. Many homeowners are looking to take advantage of recent appreciation in the value of their homes. In the recent past, most homeowners elected to do this with a cash-out refinance. This was especially true as mortgage rates have remained low. However, as mortgage rates begin to rise, homeowners are not going to want to give up their ultra-low fixed-rate first mortgage. Trans-union has projected 1.6 million new home equity consumers in 2018. Are you one of those people? Here are some common reasons homeowners take equity out of their home. Home Improvements: The money could be