A home equity line of credit, or HELOC, is a revolving line of credit that allows you to tap into the equity you’ve built up in your home. You build up equity every time you make a mortgage payment, or the value of the property increases.
To qualify for a HELOC you have to have built up at least 20% equity in the property. You also need to have good credit. If you do qualify, you can access up to 65% of the value of the property.
With a HELOC, the full sum is deposited into an account. You can take out as much or as little as you want and use it whenever you want on whatever you want. There are no fixed prepayment amounts and you only pay interest on the money you use.