What is a Home Equity Line of Credit?
A HELOC is a line of credit secured by your home that gives you a credit line to use for expenses or debt consolidation. A HELOC is often less expensive than other forms of credit and allows homeowners a lower interest opportunity to leverage a valuable asset they already own — their home’s equity.
A HELOC is typically offered as a variable-rate product with a revolving credit line (similar to a credit card), but instead of using your credit score as a primary basis for approval, the amount you are eligible for is based on the amount of equity you have in your home. This means you can borrow against the line for a specific amount and pay it back over time. Additionally, you can continue to make payments toward the balance, opening up your available credit line each time you do so.