A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by the equity in your home, allowing you to borrow funds as needed, up to a predetermined limit. It’s a flexible financial tool often used for home improvements, debt consolidation, or other expenses.

HELOC loans are mostly used for home improvements, debt consolidation, and major expenses like education or medical bills. They provide homeowners with access to the equity in their homes, offering flexibility and relatively lower interest rates compared to other forms of credit.

HELOC loans involve some risk because they are secured by your home, meaning you could potentially lose your home if you can’t make the required payments. Assess your financial stability and ability to manage the debt responsibly before obtaining a HELOC.