A home equity line of credit (HELOC) lets you borrow against the equity in your home and use the funds as needed, similar to a credit card but secured by your property. Once approved, you can draw from the line, repay it, and borrow again during the draw period without reapplying. Equity is simply the difference between your home’s value and what you still owe on your mortgage.

Some HELOCs come with upfront costs like appraisal, application, or closing fees, though certain lenders may waive some of these. During the draw period, you can access funds using checks or a card, and payments may be interest-only or include some principal, depending on the plan. If the rate is variable, payments can change over time even if your balance doesn’t.

After the draw period ends, the loan moves into repayment. At that point, you must start paying back the full balance—either over a set schedule or, in some cases, as a large lump-sum payment.