A Home Equity Line of Credit (HELOC) is a type of home equity loan that provides an account from which the borrower can draw funds as needed, similar to a credit card. It allows for flexible borrowing based on the home's equity with interest accruing on the actual borrowed amount.
A line of credit (LOC) is an arrangement between a financial institution and a borrower that establishes a maximum loan balance that the lender permits the borrower to access or maintain. The borrower can draw funds, repay, and redraw, provided the borrowing does not exceed the agreed credit limit.
