Back to glossary

HELOC (Home Equity Line of Credit)

A revolving credit line secured by your home, usually with a variable rate.

Why it matters

A HELOC works like a credit card backed by home equity. The draw period lasts 5–10 years, followed by a repayment period. Because the home is collateral, missed payments can lead to foreclosure. Rates are usually tied to the prime rate.

Learn deeper

Loans — Refinance & Home Equity

See also

Educational only — not financial, tax, or legal advice.