Home Equity Line of Credit

A Home Equity Line of Credit (HELOC) is a revolving loan that allows homeowners to borrow against the equity they have built in their property. It functions like a credit card: you are approved for a maximum amount and can borrow or repay as needed during the draw period, typically 5-10 years. Interest is paid only on the amount borrowed, and the funds can be used for various purposes such as home improvements, debts, or education. Once the draw period ends, you enter the repayment phase, where you pay back the remaining balance plus interest.