A HELOC loan, or home equity line of credit, is a flexible revolving line of credit secured by the equity in your home. It functions much like a credit card, allowing you to borrow money as needed up to a set limit during a specific draw period. You only pay interest on the exact amount of money you borrow rather than the full credit line. Once the draw period ends, you enter the repayment phase where you must pay back both the principal and interest.