HELOC (Home Equity Line of Credit)
A revolving line of credit secured by your home equity, which you can draw from as needed.
What does heloc mean?
A HELOC lets you borrow against your equity up to a limit, usually with a variable rate and an interest-only draw period followed by repayment. Because your home secures it, missed payments put the house at risk.
Put it to use
Related terms
HELOC — frequently asked
What is the difference between a HELOC and a home equity loan?
A home equity loan gives you a lump sum at a fixed rate with set payments. A HELOC is a revolving line you draw from as needed, usually at a variable rate — more flexible, but your payment and rate can change over time.
How much can I borrow with a HELOC?
Lenders typically let you borrow up to 80%–85% of your home’s value minus what you still owe. On a $400,000 home with a $250,000 mortgage, an 85% limit leaves roughly $90,000 of available credit.