Home equity line of credit (HELOC)
A home equity line of credit (HELOC) is a loan, usually a second mortgage, that lets you borrow against your home equity as you need it, up to a limit based on a percentage of that equity.
New Jersey example
Say a Hamilton homeowner has a made-up $150,000 in equity and opens a HELOC with a $60,000 limit. They draw $15,000 for a new roof and later $10,000 more, leaving $35,000 they can still borrow. Because a HELOC is a mortgage, the house is pledged as security for it.
Official source
This is a plain-English summary. Rules and dollar amounts change, so check the official source or a professional before you file or sign anything.