Heloc stands for Home Equity Line of Credit . The best heloc rate possible depends on the financial history of the individual applying for the program.

A home equity line of credit (HELOC) is similar to a checking account in the following ways:

* Checks drawing funds on a HELOC are written like normal checks

* A HELOC check will bounce (NSF) if you exceed the credit line (and you will likely pay fees for such an occurrence)

* Some HELOC programs are free if you write checks, some require an annual fee whether you use them or not

The HELOC is different from a checking account as follows:

* Money spent on HELOC checks is money that you don't generally have at the time (it must be paid back eventually)

* Minimum amount per check (checks from a HELOC usually must be at least $100, some banks want at least $250)

* When using a HELOC check, your minimum monthly payment on the HELOC will change in the month after the check is cashed

* If you don't pay the HELOC or default on the HELOC, the bank may go after your home

* The interest rate on a HELOC generally changes once or twice per year

HELOC calculator can be found online at Free Calculator, First Niagara, and Money Zine. Other places once can find the Heloc calculator is Vertex 42 and First Tennessee.

If HELOC was used to improve your home, the interest paid on the loan is tax deductible up to 1 million dollars. If HELOC was used for other purposes, you can deduct the interest up to $100,000.

The fixed interest rate o a HELOAN can be as much as 1% lower than that of the adjustable rate on a HELOC. The payment on the HELOC, if it is interest only will be less than the payment on fully amortized payment on the HELOAN.