HELOC or HELOAN
Home equity lines of credit (HELOCs) and home equity loans are similar methods of borrowing money against the ownership stake you have in your home. Let’s look more closely at how HELOCs and home equity loans work, and how to determine which would work best for you.
Home equity line of credit (HELOC)
A HELOC is a revolving form of credit with a variable interest rate, similar to a credit card.
• Interest-only payments
• Very flexible
• Fixed rate options
Home equity loans
A secured loan that allows you to borrow a set amount against your equity at a fixed interest rate and repayment term.
• Predictable monthly payments
• Loan proceeds can be used however you see fit