Definition of "Line of credit"

Josephine Carpenter real estate agent

Written by

Josephine Carpenterelite badge icon

RE/MAX Elite

The maximum pre-approved amount that an individual or business can borrow without preparing a new credit request. It is a safety buffer in the event funds are needed for unexpected occurrences or emergencies. Under the line of credit provision, a check may be written whenever funds are needed. Interest is charged only on the amount borrowed. Interest incurred on the first and second homes are deductible for tax purposes.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

In everyday discourse, a merger defines the combination of two entities, be it real estate or two companies, into a single and legit one. We should make a difference between a merger and ...

Simply put, the meaning of purchase money mortgage is a type of seller financing. Explicitly, a home seller issues a mortgage to the borrower as part of the buying transaction without ...

Real estate bought and leased to tenants to obtain rental income. ...

Sheet metal, often made of aluminum, used to cover a structure's open masonry or wood joints. The purpose of flashing is to prevent the penetration of water as well as to provide a drainage ...

The accelerated depreciation definition is a type of depreciation that makes it possible for a homeowner or real estate investor to depreciate their property faster than the straight-line ...

That part of a roof which projects beyond the sides of the building. The eaves keep rain overflow of the sides of a building structure and seal the roof rafters. ...

Obtaining money and/or property from a deceased person whether by will or not. ...

Divides a locality into districts for differing purposes. The map is continually kept current. It reveals the status of each district. ...

Major city in a metropolitan area. ...

Popular Real Estate Questions