Definition
A revolving line of credit secured by home equity, typically variable rate with a draw period followed by repayment.
Example
The HELOC had a ten-year draw period before converting to a twenty-year repayment schedule.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does HELOC mean in real estate?
A revolving line of credit secured by home equity, typically variable rate with a draw period followed by repayment.
How is HELOC used in practice?
The HELOC had a ten-year draw period before converting to a twenty-year repayment schedule.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.