What is a home equity line of credit1 (HELOC), and how does it work? Is a home equity line of credit the same as a home equity loan or a mortgage? How can I obtain a home equity line of credit? And finally, what are the best ways to use a home equity line of credit? Though it all may sound confusing, a home equity line of credit is quite simple and it can be a powerful tool to have in your financial toolbox.


In this episode of Financial Cents, Brent Cannon, executive vice president and director of community banking, sits down with Ana Ochoa, vice president and private banking relationship manager, to discuss HELOCs. According to Ana, “a home equity line of credit is a line of credit that you use based on the equity you have in your home, whether it’s a primary home, second home or vacation home2.” She goes on to explain that unlike a home equity loan, “you can borrow and pay it off, and still have the credit available after you pay it off.”

“A home equity line of credit is great for debt consolidation because the interest rates are generally so low. You know, one of the primary goals of debt consolidation is to reduce the interest cost so you can pay off the debt faster.”

– Brent Cannon

The flexibility a home equity line of credit offers is precisely what makes it such a powerful tool. Not only can you use it for things like renovating your home or consolidating debt, you can also decide not to use it and simply have it function as a cash reserve in case of an emergency or an investment opportunity.


Financial Cents is hosted by Brent Cannon, executive vice president and director of community banking, and features real answers to the real questions that Arizona businesses and individuals have about money and finance. Featuring veteran bankers from National Bank of Arizona, each episode delivers the kind insights you could only get from a friend in the business.



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( 1 ) Subject to credit approval and property evaluation. Terms and conditions apply. Contact a banker for details. Equal Housing Lender. NMLS #467014


( 2 ) All loans subject to credit approval; terms and conditions apply. APR is based on credit-worthiness and other factors. Your actual APR may be higher. Contact branch for full details. Equal House Lender. NMLS #467014