Home Equity

Credit limit is the maximum amount available under a HELOC or similar revolving home-equity line.

Draw period is the phase of a HELOC during which the borrower can borrow, repay, and borrow again up to the available limit.

Mortgage home-equity terms that explain borrowing against existing property value through second-lien loan products.

A HELOC is a revolving home-equity credit line secured by the property, usually in a second-lien position.

A home equity loan is a second-lien loan that lets a homeowner borrow a lump sum against built-up home equity.

A line freeze is a restriction that temporarily prevents or limits new borrowing under an existing HELOC.

Repayment period is the later phase of a HELOC when the borrower is expected to pay down the outstanding balance rather than continue drawing freely.

A second mortgage is a loan secured by a home that sits behind the first mortgage in lien priority.