Correct Marie and Brian! Heloc is an acronymn for HomeEquityLineOfCredit.

The Heloc loans are always tied to the "Prime" Index (which is currently at 3.25%), and it always has a margin which can be as little as .125 and as much as 3.5 or more. The way these loans usually work is that the payment is usually interest ony based on the index (3.25 plus the margin), your payment will be the loan amount times that index + margin. Lines of credit are usually in second position (second trust deed), but sometimes a Heloc can be in first position. Another name for a Heloc loan is a "line of credit", and a heloc loan is usually a second trust deed.

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