what is a heloc

A Home Equity Line of Credit (HELOC) is a type of revolving, secured loan in which the lender agrees to lend a maximum amount within an agreed period, with the borrower's property as collateral. It is a form of credit that allows homeowners to borrow against the equity in their homes. HELOCs typically have variable interest rates and are often used for major purchases, home improvements, education, or medical bills. The draw period, during which the borrower can access the funds, is followed by a repayment period. Failure to repay the loan can result in the loss of the borrower's home