HELOC

How it works.

A home equity line of credit, or HELOC, is revolving credit secured by your home. You can generally draw funds as needed during a set period, up to an approved limit, and repay under the program’s terms.

At a glance

• Borrow against available home equity
• Draw funds up to the approved limit during the draw period
• Payments and rates may change

What to consider

Many HELOCs have variable rates, so payments can change. Your home secures the borrowing, and unpaid balances must be repaid. Ask about draw and repayment periods, fees, and how a rate change would affect your budget.

Program details and qualification depend on the lender and your circumstances.