A Home Equity Line of Credit (HELOC) is a popular financing option where homeowners can borrow against the equity of their home. The credit available is often expressed as a percentage of the home's appraised value minus any outstanding mortgage balances, allowing homeowners to access a fund for personal loans, home improvements, education expenses, or consolidating debts. Unlike a traditional home equity loan, which provides a lump sum, a HELOC allows borrowers to withdraw funds as needed during a draw period, typically ranging from 5 to 10 years, followed by a repayment period. The interest rates are usually variable, meaning they can fluctuate over time based on market conditions.