Home Equity Loans vs HELOCs: Understanding the Differences
A home equity loan and a home equity line of credit (HELOC) are both secured loans that allow homeowners to borrow against the equity in their homes. With a home equity loan, you receive a lump sum of money that you repay over a fixed term, typically with fixed monthly payments. A HELOC, on the other hand, is a revolving credit line that you can access as needed, up to a certain limit. HELOCs typically have variable interest rates and may come with annual fees.
