Answer: A HELOC loan is a revolving line of credit with an adjustable interest rate typically indexed to the prime rate. You access the home equity line of credit by writing checks provided by the lender. Most HELOC loans provide a line of credit up to 85% of your appraised homes value, minus the current mortgage loan balance. You only pay interest (which, like mortgage interest is usually tax-deductible) on the amounts you borrow on the home equity line of credit. If you don’t use the line of credit, you don’t have any monthly payments to make. With a HELOC loan, your home serves as collateral; in most cases, the home equity line of credit will be a second lien on your property.