What’s a HELOC? / What’s a Home Equity Line of Credit?

A Home Equity Line of Credit (HELOC) is a line of credit you can access for a variety of things: debt consolidation, home improvements, major purchases (appliances, cars, RVs, boats, etc.), and many other expenses. 

 

It works much like a credit card. But, because it’s secured by your house, you may be able to access more money at lower interest rates than with a credit card or personal loan. 

 

HELOCs also give you flexibility in your monthly payments. You can even make interest-only payments during the draw period (up to the first 10 years of your HELOC).