What Is HELOC?
A HELOC is a revolving line of credit secured by a home's equity — similar to a credit card, letting a homeowner borrow, repay, and re-borrow up to a set limit during a draw period, usually at a variable interest rate.
Why It Matters
Unlike a home equity loan, a HELOC only charges interest on the amount actually drawn, making it flexible for ongoing expenses like a phased renovation — but variable rates mean payments can rise.