A home equity line of credit, or HELOC, is a line of credit tied directly to a property’s value. Throughout the draw period established at closing, a homeowner can borrow against the equity they have built up in their home. If the amount that a homeowner owes on their mortgage is less than the value of the home, they are typically able to borrow up to 85% of the value of the home minus the outstanding balance.

Home equity line of credit (HELOC)
« Back to Mortgage Terms