A Home Equity Line of Credit (HELOC) works more like a credit card. You are allowed to borrow up to a certain amount for the life of the loan which set by the lender typically 10 years or less. During that time you can withdraw money as you need it. 

As you pay off the principal, your credit revolves and you can use it again. Let's say you have a $10,000 home equity line of credit. You borrow $5,000, but then pay back $3,000 toward the principal. You now have $8,000 in available credit. This gives you more flexibility than a fixed-rate home equity loan as you only pay interest on the amount of funds accessed on the loan at any one time.

Credit lines have a variable interest rate that fluctuates over the life of the loan. They typically have minimum and maximum rates that are provided when the loan is approved. Payments will vary depending on the interest rate and the balance of the loan at the end of each month. 

When the original life span of a line of credit has expired the loan balance must be paid off. In many cases the open end home equity line of credit may be converted to a standard home equity loan amortized over a specific period without the ability to access funds once paid down.

Lines of credit are accessed by transfers to a checking account.