A home equity line of credit, also known as a HELOC, is a loan that uses the value of your home as collateral. This type of loan can be used for things like home improvements, debt consolidation, or other major expenses. Your home equity is the amount of your home’s value that you own outright, minus any outstanding mortgage or other liens. To get a HELOC, you’ll need to have enough equity in your home to qualify. The amount of equity you have will also help determine the loan’s interest rate and terms.