Glossary term
Home equity line of credit
Revolving credit secured by a home. Amounts can generally be borrowed, repaid, and borrowed again within the approved limit.
Plain meaning
What a HELOC means
A home equity line of credit, or HELOC, provides reusable credit secured by the home, up to the approved limit.
How OpenBook uses it
A separate secured debt balance
OpenBook treats a HELOC balance as secured debt in debt, net-worth, sale-proceeds, and qualification contexts.
Common boundary
Limit, balance, and principal repayment differ
An approved limit is not the same as an amount borrowed. HELOC rates are commonly variable, and an interest-only minimum payment may leave principal unchanged.