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.”