A home equity line of credit, also known as a HELOC, is a line of credit secured by your home that gives you a revolving credit line to use for large expenses.
To qualify for a HELOC, you need to have equity in your home availble, meaning that the amount you owe on your home must be less than the value of your home.
With a HELOC, you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card. Borrow as little or as much as you need – when you need.