home equity line

House-backed credit

A home equity line of credit—usually abbreviated HELOC—is a revolving loan secured by the borrower's ownership stake in their home.

Unlike a fixed home equity loan, a line of credit lets you borrow as needed up to a limit, paying interest only on what you use: We tapped our home equity line to renovate the kitchen.

The credit line typically has a draw period followed by a repayment period.

Opposites
collateral type

home equity linesignature loan

Unsecured debt on creditworthiness

payday loan · credit card debt · student loan · unsecured loan · personal loan

credit structure

home equity linehome equity loan

Debt using house as collateral

fixed-rate mortgage · term loan · installment loan · mortgage · auto loan

financial direction

home equity linemortgage payment

Recurring housing debt transfer

down payment · savings account

Family

home, equity, line, homes, homed, homing, homeless, homely, homeland

Familiarity
Top 500,000
Profile
Timeless · Abstract · Rated G