Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) is a flexible loan option that allows homeowners to borrow against the equity they have built up in their property. Essentially, it turns part of the home’s value into cash, which can be used for expenses like home improvements, debt consolidation, or education costs. Borrowers can withdraw money as needed, up to a specified limit, and pay interest only on the amount they use. A HELOC typically has a variable interest rate and may have a draw period, followed by a repayment period where principal and interest payments are required.