A home equity line of credit (HELOC) is a revolving credit line. A HELOC allows the borrower to take out money against the credit line up to a preset limit, make payments, and then take money out again. With a home equity loan, the borrower receives the loan proceeds all at once, while a HELOC allows a borrower to tap into the line as needed.

A home equity line of credit, or HELOC, is a revolving credit line that’s secured by the equity you’ve built in your home. The HELOC can be used as needed during your draw period, which is the timeframe between opening it, up until your repayment begins. You only pay interest on what you borrow from your HELOC.