HELOC is an abbreviation of Home Equity Line Of Credit.  This refers to a loan in which the lender agrees to lend a maximum amount wihin an agreed period.  This differs from the conventional home equity loan in that the borrower is not advanced the entire sum, but uses the line of credit to borrow sums as needed that total no more than the approved sum.  A HELOC in many ways is similar to a credit card.  At closing you are assigned a specific credit limit that you can borrow from ad you are billed a minimum monthly payment requirement.  At the end of the draw period you will have to pay back the full amount.  The interest rate on a HELOC is variable based on an index such as the prime rate.  this means that the interest rate can and often does change over time.