HELOC is a type of credit that allows you to borrow money using your home equity as collateral, also referred to as a PrimeLine. Your home equity is the difference between the value of your home and the amount you owe on your mortgage.
A Home Equity Line of Credit works like a credit card, meaning you can borrow and repay money up to a limit and only pay interest on the amount you use. You can use a HELOC for various purposes, such as home improvements, vehicle purchases, vacations, building a business, or emergency expenses.
Unlike a traditional loan, a Home Equity Line of Credit gives you a revolving line of credit that you can use as you wish. You only pay interest on the amount you use, not the entire credit limit.
You can repay the principal at any time, without penalty. Plus, since your home is used as security, you may get a lower interest rate than other forms of credit. Your HELOC is available to you for as long as you own your home.