Home equity loans and home equity lines of credit (HELOCs) are two types of secured loans that allow homeowners to borrow against the equity they have built up in their homes. Home equity loans provide a lump sum of cash, while HELOCs offer a revolving line of credit that can be used as needed.
Both home equity loans and HELOCs can be used to finance a variety of expenses, including home improvements, debt consolidation, and education costs. However, there are some key differences between the two types of loans that borrowers should be aware of before making a decision.
