Mortgage Glossary
HELOC (Home Equity Line of Credit)
A revolving credit line secured by your home's equity.
A Home Equity Line of Credit (HELOC) lets you borrow against your home's equity as a revolving credit line, similar to a credit card.
During the draw period you can borrow what you need and pay interest only on what you use. A repayment period follows.
A HELOC keeps your first mortgage untouched — ideal when you want to protect a low first-mortgage rate while accessing equity.
Frequently asked
How is a HELOC different from a cash-out refinance?
A HELOC is a second loan that leaves your first mortgage in place; a cash-out refinance replaces your first mortgage with a larger one.
How much can I borrow with a HELOC?
It depends on your equity and credit, but combined loan-to-value limits often allow borrowing up to 80%–90% of your home's value.