Real Estate Webmasters Glossary Definitions of HELOC

Home Equity Line of Credit, also known as 2nd mortgage or more simply "a 2nd" or "line of credit"

An acronym standing for home equity line of credit is not a mortgage but a line of credit that one owes nothing on unless it is used. When used it is most often a simple interest loan. That means that interest is charged on the principle balance owed that day. There is not a fixed payment, just a minimum payment much like a credit card.