How a HELOC works
A HELOC turns the equity you have already built into a flexible line of credit…
Draw period vs. repayment period
During the draw period (often the first 10 years) you pull funds as needed…
What is a HELOC?
A HELOC (home equity line of credit) is a revolving line of credit secured by the equity in your home. You can draw funds as needed during the draw period, repay them, and draw again — paying interest only on what you use.
Frequently asked questions
Is a HELOC a loan?
Not a lump-sum loan. It is a revolving line of credit you draw from, repay, and reuse during the draw period.
What can I use a HELOC for?
Common uses include home renovation, consolidating higher-rate debt, and keeping a standby line ready for emergencies.