HELOC (Home Equity Line of Credit)

A revolving credit line secured by the equity in your home. You can borrow as needed up to a credit limit, similar to a credit card. Interest is typically variable and charged only on the amount drawn.

A home equity line of credit works like a credit card backed by your house: during the draw period you borrow, repay, and reborrow up to a limit, typically at a variable rate. When the draw period ends, the balance converts to a repayment schedule of principal plus interest.