a type of home equity loan where the borrower is given a line of credit. They do not have to start out borrowing the full amount.

A Home Equity Line of Credit (HELOC) is a type of home equity loan. The big difference is that the lender agrees to allow the borrower to borrow up to a maximum amount, but the borrower decides when to actually use the money and when. It is allows the borrower flexibility when they don't know exactly how much they will need and when.