Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) is a revolving credit option that allows homeowners to borrow against the equity they’ve built in their property. Similar to a credit card, a HELOC provides access to a flexible credit line during a designated "draw period"—typically lasting 5 to 10 years—where you can borrow funds as needed for expenses such as home renovations, medical bills, or other major costs. Interest is only charged on the amount used, offering a cost-effective borrowing option. After the draw period ends, the "repayment period" begins, usually spanning 10 to 20 years, during which borrowed funds must be repaid. Because your home serves as collateral, it’s essential to use a HELOC responsibly to avoid financial risk.