HELOC

abbreviation or noun

ˈhē-ˌläk 

plural HELOCs

: a line of credit extended to a homeowner who uses their home as collateral : home equity line of credit

With a home equity loan or a home equity line of credit (HELOC), you can draw on your equity for just about anything—to fund your business, pay off high-rate debt or update your home, to name a few. And because … HELOCs are secured by your home, they typically come with lower interest rates than credit cards or personal loans. … A HELOC is a revolving line of credit, so you can borrow and repay funds as you need them.

—Emma Patch

Word History

First Known Use

1987, in the meaning defined above