Home equity line of credit (HELOC)
Revolving credit secured by your home equity, capped at a combined loan-to-value limit and split into an interest-only draw period and an amortizing repayment period.
In plain terms
A HELOC works like a credit card secured by your house: you draw up to the limit during the draw period (often 10 years) and usually pay interest only on what you draw, then amortize the balance during the repayment period (often 20 years). The rate is usually variable, tied to prime. The credit limit is home value × CLTV − your first mortgage. Estimate it with the HELOC calculator.