A Home Equity Line of Credit is a special kind of loan (also known as a "revolving loan") which is secured against a property and allows the owner to borrow and repay money at her leisure. Periodic payments of at least accumulated interest are required but the loan is fully open, may be paid out in whole or in part at any time and, if there is still money available under the loan ceiling, the borrower may take more money for her use. Generally, a home equity line of credit features a variable interest rate, a specific time period during which money may be withdrawn, and a repayment period following any withdrawal. These loans are refered to as Revolving Loans because as soon as principal is repaid, it may be borrowed again

A home-equity line of credit is secured by the residual equity in your home. To calculate equity, subtract mortgage debt from your home value. Home equity lines allow a homeowner to make repairs or other home improvements, refinance other debt, or use for general purposes. Unlike a home-equity loan, payments are flexible and may consist of interest-only payments.