HELOC

What is a HELOC?

A HELOC (Home Equity Line of Credit) is a flexible loan that lets you borrow against the equity you’ve built in your home. Think of it like a credit card that’s secured by your house — you’re approved for a maximum amount, and you can draw from it as needed during a set period of time.

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Your credit limit is based on how much your home is worth compared to what you still owe on your mortgage. You only pay interest on the amount you actually use, not the full credit line.

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Many homeowners use a HELOC for things like home improvements, consolidating higher-interest debt, covering large expenses, or creating a financial cushion. Because it’s tied to your home, rates are often lower than credit cards or personal loans — but it’s important to use it wisely since your home is used as collateral.

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If you’re wondering whether a HELOC makes sense for your situation, I’m always happy to walk through the numbers and help you think it through.