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Home equity lines of creditTap your home's equity, only when you need it
A HELOC turns the equity you've built into a flexible, reusable credit line — draw what you need, pay interest only on what you use, and borrow again as you repay.
- Borrow against the equity you've already built
- Pay interest only on what you actually draw
- A reusable credit line during the draw period
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Reusable during the draw period
Interest only on what you draw
Secured by your home equity
What you can dowith a HELOC
For many U.S. homeowners, a HELOC is the most flexible way to put built-up equity to work — a revolving credit line you can draw from, repay, and use again during the draw period.
Because the line is secured by your house, the decision deserves care. Know what you'll draw, when the money is needed, and how you plan to pay it back.
How it works:equity check to fundsin four steps
Clear steps, no guesswork.
STEP 01
Check your equity and rate
Enter your property's estimated value and current mortgage balance to understand your available equity and potential borrowing range.
STEP 02
Apply with your details
Provide income, employment, property, and other information needed by the lender.
STEP 03
Appraisal and approval
The lender evaluates the property, credit profile, and financial information before establishing the credit limit and terms.
STEP 04
Draw funds as you need them
Access available funds during the draw period and repay your balance to replenish available credit.
A credit line, nota lump sum.
A HELOC is a revolving line of credit: draw funds as costs arrive, usually at a variable rate. A home equity loan pays a lump sum at closing with a fixed schedule — and often a fixed rate.
If you're remodeling room by room, covering college costs over a few years, or keeping a safety net on standby, a credit line usually tracks real life better than borrowing everything on day one.
Borrow, repay,and borrow again.
During the draw period — commonly around 10 years, though terms vary by lender — you can access available credit, repay what you have borrowed, and potentially borrow again.
Once the draw period ends, the line typically moves into a repayment period. New draws may no longer be available, and payments generally include principal and interest according to the lender's terms.
HELOC, withoutthe guesswork.
Clear terms, plain English, and the numbers U.S. lenders actually use — equity, CLTV, credit, and income — before you fill out a single application.
Flexibility,when you need it.
A HELOC sits ready in the background — available when a cost arrives, quiet when it doesn't.
Because you draw in increments rather than all at once, your balance can track the real pace of a project instead of a lump sum sitting in an account.
Reusable credit line
Borrow, repay, and reuse available credit during the draw period, similar to a credit card but secured by home equity.
Pay only for what you use
Interest is generally charged on the amount you've drawn rather than the full available credit limit.
Potentially lower rates
Because a HELOC is secured by your home, its rate may be lower than some unsecured borrowing options.
Flexible access to funds
Access funds over time without committing to a single lump-sum loan upfront.
Your available credit is based on the equity in your home, your lender's combined loan-to-value limits and your financial profile.
What affects yourHELOC rate
Most HELOCs carry a variable rate: a benchmark index plus a margin set by the lender. The index moves with the wider market, while the margin reflects how your equity, credit profile and property are assessed.
Knowing which of those inputs you can influence — and which you cannot — is the fastest way to understand the range you are likely to see.
0 yrTypical draw period length
0%Common combined loan-to-value ceiling
01
Home equity & CLTV
Combined loan-to-value ratio compares your existing mortgage debt and new HELOC balance with your home's market value.
02
Credit score
A stronger credit profile can help qualify for more favorable pricing and a lower margin over the benchmark index.
03
Income & debt-to-income ratio
Lenders evaluate whether your income and existing obligations can support the HELOC and potential future draws.
04
Property type
Primary residences may receive different pricing than investment properties or second homes.
05
Prevailing index rates
Many HELOCs have variable rates tied to a financial benchmark, such as the Prime Rate.
Which equity option fits your next move?
American homeowners typically choose between three paths. All three tap the equity you've built — the difference is how the money arrives, how interest works, and how you pay it back.
Frequently askedquestions
A HELOC is a revolving line of credit that lets you draw funds as needed, typically with a variable rate. A home equity loan generally provides a lump sum with a fixed repayment schedule and, often, a fixed interest rate.
The draw period is the period when you can access available credit, repay what you've borrowed, and potentially borrow again. It commonly lasts around 10 years, although terms vary by lender.
HELOC rates are predominantly variable and typically move with an underlying benchmark index. Some lenders may offer options to convert portions of the balance to a fixed rate.
The amount depends on factors such as your home's value, existing mortgage balance, combined loan-to-value limits, credit profile, income, and the lender's requirements.
HELOC funds can generally be used for many purposes, but borrowing should be planned carefully because the line is secured by your home.
The HELOC typically moves into a repayment period. New draws may no longer be available, and payments generally include principal and interest according to the lender's terms.
Still deciding? Comparing a few lenders is usually the quickest way to see what your equity can support.
See what yourequity could support
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