What is a HELOC?
HELOC (home equity line of credit): A HELOC, or home equity line of credit, is a revolving credit line secured by your home. You can draw from it as needed during a set period, up to your limit.
A HELOC typically has a draw period, when you can borrow and may make lower payments, followed by a repayment period, when you repay the balance. Most HELOCs have variable rates.
Because your home secures the line, missing payments could put your home at risk.
When you compare offers
Check the length of the draw and repayment periods, how the rate can change, and what the payment could be once repayment starts.
Related guides
- How a HELOC's Draw and Repayment Periods Work
What happens during a HELOC's draw period and repayment period, why the payment can change, and the questions worth asking before you open a home equity line of credit.
- Home Equity Loan vs. HELOC: What to Compare
How a home equity loan differs from a HELOC, what it means that your home secures the debt, and the details worth comparing before you borrow against your equity.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.