A Home Equity Line of Credit, known as a HELOC, is much like a credit card or any other type of open-ended credit. You can borrow money as needed, up to the credit limit your lender assigns, access your loan by making a transfer into your checking account. A HELOC is a variable-rate loan, so your monthly payments will change based on your outstanding balance and fluctuations in the rate. HELOCs are not available in all states.
If credit card payments are eating up your disposable income each month, or if you need cash to remodel your kitchen, buy a new car, take a vacation, pay off debt or anything else, a home equity line of credit (HELOC) might be your best bet.
These loans let you borrow money using the equity in your home as collateral.