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A home equity line of credit (HELOC) is a type of mortgage that allows borrowers to tap into the equity they've built in their homes. This option is particularly appealing because it provides a revolving line of credit, enabling homeowners to borrow against their equity as needed. Essentially, as they pay down the original mortgage and possibly increase their home's value, they can access a portion of that equity.

Unlike a fixed-rate mortgage or an adjustable-rate mortgage, which primarily focus on financing a home purchase without direct access to equity, a HELOC specifically serves the purpose of leveraging that equity. Meanwhile, a wrap-around mortgage is a type of seller financing where the new loan encompasses the existing mortgage, rather than allowing the borrower to withdraw equity.

The home equity line of credit empowers homeowners to use their property value for various needs, such as home improvements, debt consolidation, or major expenses, making it a versatile financial tool.