A home equity line of credit or HELOC is a variable-rate revolving credit line that is more like a credit card with a maximum spending limit. Homeowners can borrow money, pay it back and then borrow again as needed. Accessing the funds is easy. Just write a check, charge your credit card or use an ATM card against the credit line.

Since interest is charged only on the money that is actually borrowed, a credit line is ideal for those with ongoing needs like recurring medical expenses or a long-term home-improvement project. It is also useful in case of an emergency for quick and easy access to cash.