Which mortgage feature allows homeowners to borrow against their accumulated equity?

The Home Equity Line of Credit (HELOC) is a financial product that enables homeowners to borrow against the equity they have built up in their home. As homeowners pay down their mortgage and as property values potentially increase, their equity grows. A HELOC operates like a credit card, providing the borrower with a credit limit based on the equity in their home.

Borrowers can access funds as needed, making it a flexible option for various expenses, such as home improvements, medical bills, or education costs. The interest on the amounts borrowed may be tax-deductible, depending on the borrower's financial situation and how the funds are used, which adds an additional benefit.

In contrast, a second mortgage is a loan that is secured against the home but it's typically a lump sum that must be repaid over a set term. The primary mortgage is the main loan taken to purchase the home, and a fixed-rate mortgage refers specifically to a mortgage type where the interest rate remains constant throughout the life of the loan. While all these options relate to borrowing against home equity, only a HELOC provides ongoing access to funds based on that equity, making it the most suitable answer for this question.