---
title: "HELOC (Home Equity Line of Credit) — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/heloc/
---

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Mortgage & lending[All terms starting with H](/glossary/#letter-H)

# HELOC (Home Equity Line of Credit)

Also called: home equity line of credit, equity line

A revolving credit line secured by your home equity, drawn and repaid like a credit card during a draw period.

A HELOC gives you a limit you can draw against during a draw period, typically paying interest only on what is drawn, followed by a repayment period when the balance amortizes. The rate is usually variable.

Because it is secured by the home, a HELOC prices better than unsecured credit, and carries the corresponding risk. Lenders commonly require seasoning and a maximum combined loan-to-value across all liens.

## Related terms

- [Cash-out refinanceRefinancing for more than you owe and taking the difference in cash, converting equity into spendable funds.](/glossary/cash-out-refinance/)
- [EquityThe difference between what a property is worth and what is owed against it.](/glossary/equity/)
- [LTV (Loan-to-Value Ratio)The loan amount as a percentage of the property’s value, the main measure of how much equity cushions the loan.](/glossary/loan-to-value/)
- [LienA legal claim against a property securing a debt, which generally must be resolved before clear title transfers.](/glossary/lien/)

## Go deeper

- [HELOC options](/loans/heloc/)
- [HELOC vs cash-out refinance](/blog/heloc-vs-cash-out-refinance/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)