A Home Equity Line of Credit, also known as a “HELOC,” provides a low-interest borrowing opportunity for qualified homeowners. The line of credit is typically secured against the difference between a property’s fair market value and what is owed. After an impartial appraisal is established, the outstanding mortgage balance and other encumbrances are deducted. That amount of equity can then be leveraged as collateral. Because a HELOC is backed by collateral, local lenders can offer qualified borrowers increasingly low-interest rates.