Home Equity Line of Credit
Also known as HELOC
A revolving credit line secured by your home's equity that you can draw from as needed.
In plain English
A HELOC works like a credit card secured by your home — you're approved for a credit limit and can borrow, repay, and re-borrow during a draw period, usually at a variable interest rate, followed by a repayment period.
HELOCs are flexible for ongoing expenses like phased renovations, but variable rates mean your payment can rise — and again, your home is the collateral.
Where you'll run into it
Guides and tools on TheBuyingPath that cover home equity line of credit in context.
Related terms
Not sure where this fits in your process?
Answer a few questions and get a personalized homebuying roadmap — where you are now, what comes next, and which terms like this one matter at each step.
Start your roadmap