Home Equity Loans

🔍 HELOC vs. Home Equity Loan — What’s the Difference?

Both options let homeowners borrow against the equity in their home, but they work very differently.

HELOC (Home Equity Line of Credit)

• Works like a credit card
  
  

• You borrow only what you need, when you need it
  
  

• Balance can go up or down
  
  

• Typically has a variable interest rate
  
  

• Great for ongoing or unpredictable expenses
  
  

Home Equity Loan

• Works like a traditional loan
  
  

• You receive one lump sum upfront
  
  

• Fixed monthly payment
  
  

• Typically has a fixed interest rate