Understanding Home Equity Line of Credit (HELOC)
A home equity line of credit, or HELOC, is a type of revolving credit that allows you to borrow money against the equity you have in your home. HELOCs typically have a draw period during which you can access funds up to a certain limit. Once the draw period ends, you enter the repayment period where you can no longer withdraw funds and must start repaying the borrowed amount. HELOCs are secured by your home, meaning that if you fail to repay the borrowed amount, the lender has the right to foreclose on your property.
Can You Withdraw Cash from a HELOC at an ATM?
Yes, in most cases, you can withdraw cash from your HELOC at an ATM. Many lenders provide HELOC account holders with checks, debit cards, or access to online banking platforms to withdraw cash from their credit line.
Steps to Withdraw Cash from a HELOC at an ATM
1. Check with your lender: Verify if your lender allows cash withdrawals from your HELOC using an ATM. Some lenders may have specific procedures or limitations in place. 2. Obtain a debit card or checks: If your lender offers a debit card or checks linked to your HELOC account, make sure to activate them before attempting a cash withdrawal at an ATM. 3. Locate an ATM: Find an ATM that accepts your HELOC debit card. Make sure to check for any associated fees or limitations on withdrawal amounts. 4. Enter your PIN: Insert your debit card into the ATM and follow the on-screen instructions to enter your Personal Identification Number (PIN). 5. Select the withdrawal amount: Choose the amount you wish to withdraw from your HELOC, keeping in mind any daily withdrawal limits set by your lender. 6. Collect your cash: Once the transaction is processed, collect your cash from the ATM and any receipts. 7. Keep track of your withdrawals: Monitor your HELOC account statements to track your cash withdrawals and ensure they align with your records.