A home equity line of credit (HELOC) is a line of credit tied specifically to your home. It is essentially a line of credit that you can use to make large purchases or to consolidate debt on other loans. HELOC interest rates are usually lower than those of other loans, and the interest you pay on a HELOC is tax-deductible. You can borrow as little or as much as you need with a HELOC, and you can borrow against it if necessary.