finance

home equity line of credit

A home equity line of credit (HELOC) is a revolving line of credit secured by the borrower's home, usually as a second lien behind the first mortgage. The borrower can draw funds as needed up to a credit limit during a draw period, often paying only interest, then repays during a later repayment period. Rates are typically variable. The available credit is based on the home's value minus existing mortgage debt.