What is a HELOC?

A HELOC resembles a second mortgage but functions like a credit card. HELOC funds can be drawn when you need the money instead of taken in a lump sum, as is common with second mortgages, which also are called home equity loans https://www.debt.org/real-estate/mortgages/home-equity-loans/. You can access HELOC funds when you want but cannot exceed the amount set when you signed for the credit line.