Rammelån (home equity line of credit)

A rammelån, also called rammekreditt or fleksilån, is a flexible credit line secured on the home. You get a limit to borrow within and can draw down and repay again as needed, much like an overdraft. A rammelån has a lower ceiling than an ordinary repayment loan: the limit can be up to 60 percent of the home’s value, while a repayment loan can reach 90 percent. You pay interest only on what you have actually drawn down. Use it with care, since the open access to credit makes it easy to borrow more over time, so keep an eye on how much of the limit you actually use.