HELOC Interest Only Payments

[Joe Stout]

Good morning, wondering why my co-worker is paying $700 in interest only payments but has been told that he can't take out any money from his $130,000 Home Equity Line Of Credit (HELOC). Don't you only need to pay on a HELOC if you have taken out the money and actually USED it?

What checks do banks do when you use that money? I would like to use a HELOC to reimburse my business partner for funding a rehab. Wanted to fully understand that process. Difficult for me to meet with banks during the day as a W-2 employee.