Home Equity Lines of Credit (HELOC)

A Home Equity Line of Credit (HELOC) is a flexible loan that allows homeowners to borrow money using their property's value as collateral. It works like a credit card, where you have a credit limit based on a percentage of your home's equity (the difference between your home's market value and what you owe on your mortgage). You can borrow, repay, and re-borrow funds during a draw period, often for expenses like home improvements or debt consolidation. The interest rate is usually variable, and you only pay interest on the amount you borrow.