A home equity line of credit (HELOC) lets you borrow against the available equity in your home — similar to a credit card. Your home is used as collateral, meaning if you default on your payments the lender can seize your home.
Like a credit card, you’ll be able to access funds from your HELOC as you need them, instead of like a loan where you take out a predetermined lump sum amount at the onset. However, there’s usually a minimum withdrawal amount based on the total amount of your credit line. This means you’ll be required to spend up to a certain amount.