Back to Glossary
Home Equity Line of Credit (HELOC)
Updated
January 19, 2023
A home equity line of credit, often known as a HELOC, is a revolving credit line secured by your house that you can use for high costs or consolidate higher-interest rate debt on other loansFootnote1 such as credit cards. A HELOC often offers cheaper interest rates than other forms of loans, and the interest may be tax-deductible. Please check with a tax expert regarding interest deductibility as tax regulations may have changed.
Related Topics
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual
How Much of a Mortgage Payment Goes to Principal
What Do Underwriters Do?
What Does Loan Underwriting Mean
Loan To Value and Down Payments
What is Underwriting in Real Estate?
Homeowner's Guide: DIY Home Improvement