Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit is a mortgage with an approved credit limit that allows you to draw funds on an as needed basis. In this case you only pay interest on the amount you are using , not the whole approved amount. You can choose to pay it down to zero and then draw funds again when you need it. It is an adjustable rate loan so the monthly payments can change based upon the rate fluctuation and the index it is tied to.