A home equity line of credit (HELOC) is a loan where a mortgage broker lends out a maximum priced loan over a specific period of time, and the borrowers collateral is the homes equity. This differs from other loans because most loans give you a large sum of money at one time. HELOC is more like a credit card because you have a specific amount of money you can take, that you have to pay back, but you can take the amount that you need whenever you need it.

HELOCs do not have a fixed rate, so your monthly payments could fluctuate depending on how well the market is doing.