Home Equity Line of Credit (HELOC)

Draw on your funds as-needed

What is a Home Equity Line of Credit?

The equity you have in your home is the market value of your home minus the amount you still owe.

A HELOC is a revolving account secured by the equity you have in your property. Instead of receiving funds in one lump sum payment, as you would with a Home Equity loan, funds can be drawn on an as-needed basis, allowing homeowners to access the equity in their home up to the maximum line of credit. Interest-only payments are required until the payment period has expired. Lenders typically provide borrowers with a checking account or credit card to access the funds in their equity line.

Pros and Cons of HELOC

Access to money when you need it
Interest-only payment option
Low closing costs
Lower interest rate
Tax deductible
Variable interest rate
Adds more debt
Dissolves the amount of equity in your home

Is a Home Equity Line of Credit Right for Me?

A HELOC is a good idea if you don’t have a large expense to put your funds towards, but you still want to access the equity in your home. Many homeowners choose this option to pay off other debts with a higher interest rate, but this must be done very carefully to avoid a downward spiral of debt. It’s important to understand that you will pay interest and fees and that you are reducing the amount of equity available in your home.

What’s the Difference Between a HELOC
and Home Equity Loan?


  • APR
    Variable Rate
  • TERM
    Fixed Term
    Treated as a line of credit
    Can take out money

Home Equity Loan

  • APR
    Fixed rate
  • TERM
    Fixed term
    Treated as a second mortgage
    Money received in one lump sum