HELOC

[ hee-lok ]

noun

, Personal Finance.

1. home equity line of credit: a loan in which the borrower receives a line of credit, typically for a period of five to ten years, that can be drawn on as needed, using the equity in a home as collateral.

Word History and Origins

Origin of HELOC¹

First recorded in 1960–65

Example Sentences

If you’re younger than 62 and you’re still working, a home equity line of credit, or HELOC, can provide you with a stream of income to tap later if you need it.

From Seattle Times

Like a HELOC, a home-equity loan uses the equity you’ve built up in your home.

From Seattle Times

“In this way, the cash-out refi provides protection from rising rates in the future, which is an advantage over a HELOC,” says Glenn Brunker, president of Ally Home.

From Seattle Times

When you file a Chapter 7 bankruptcy, it terminates your liability on both the primary mortgage and the HELOC.

From Encyclopedia.com

A home equity line of credit, or HELOC, provides more flexibility for large projects because you can draw on it as needed for up to about 10 years.

From Seattle Times