These loans operate in a similar way to credit cards 😊 During an initial draw period that usually lasts 10 years, you’re allowed to borrow money from the HELOC when you need to, carry a balance from month to month and make minimum payments 🙌 During that period, you’ll typically only be required to make interest payments. After the first 10 years, you’ll enter the repayment period, which often lasts 20 years. During that time, you’ll need to pay both the interest and principal amount, and you won’t be able to make any draws. You can lower your credit score by missing or making late payments. Credit score This could put you at high risk of losing your home to the lender. 
Make use of all available resources credit on your HELOC may have a negative effect on your credit score It’s a warning sign that you are at high risk even if your payments are on-time. Unexpected expenses such as a medical emergency, a roof leak or car repairs can’t be covered by your credit limit. It’s not a good idea to have all your credit available, including a HELOC or credit card. You also don’t need an emergency fund. You can, however, use your HELOC and credit cards to pay for emergencies. Credit strategically, a HELOC can affect your credit score Positively and improve your financial position. Your credit score will improve as your HELOC is paid down. Rhoderick Thurman, Douala Cameroon (thanks for the heads-up). 
Prosper.com Investopedia explains that a “home lien” is a term used to describe a legal claim made against a house. The lien placed on your property is called a “lien”. Home is what happens when you take out a mortgage and HELOC because you’re borrowing against your home. If you default on your monthly payments, or fail to pay the line of credit and loan due to expiration date, the lenders have the right to take legal action against the property. While a lien may sound scary, it had likely won’t be something you have to worry about, assuming you pay your mortgage and HELOC on time. Thomas Reed (London, United Kingdom) amended this statement on February 16, 20,21 
Investopedia.com This site provides more information. Technically, it is possible to pay off your mortgage using a home equity credit line (HELOC). This is basically a method of refinancing your mortgage, however actual refinancing allows you to lower the interest rate. Interest rate on a mortgage To pay it off quicker. A HELOC offers an appealing feature: the interest-only repayment option. The draw period ends and the principal and interest will be combined into one monthly amortized payment. This is for a 15-year loan. This could surprise you if you’re not ready.