A Home Equity Line of Credit (HELOC) is a type of loan that allows homeowners to borrow against the equity in their homes. Equity is the difference between the home's current market value and the outstanding mortgage balance. HELOCs provide a revolving line of credit, meaning homeowners can withdraw funds as needed, up to a predetermined limit. Typically, HELOCs have a draw period during which borrowers can access funds, followed by a repayment period. Interest rates are often variable, which means they can change over time. This flexibility makes HELOCs a popular choice for financing home improvements, education, or other expenses.