Financial glossary
HELOC
In plain English
A revolving line of credit secured by home equity that commonly has a variable rate, a draw period, and a later repayment period.
A HELOC is a revolving line of credit secured by home equity. You can generally draw during a defined draw period, then repay under a schedule; the rate is often variable and the payment can rise sharply when repayment begins. Test both periods in the HELOC calculator.
Related calculators
- HELOC Payment CalculatorEstimate a HELOC interest-only draw payment and the fully amortizing repayment payment, including the payment jump after the draw period.
- Home Equity Loan CalculatorEstimate a fixed-rate home equity loan payment, total interest, and combined payment with your existing mortgage.