Home Equity Loan vs. HELOC, Which One Is Right for You?
Wondering about the difference between a home equity loan vs. HELOC? They are both powerful ways to tap into your home's value. If you have home equity and need cash for a renovation, debt consolidation, or another major expense, a home equity loan or HELOC can provide the funds you need. Here is a quick look at a home equity loan vs. HELOC. Quick Answer: FeatureHome Equity LoanHELOCFundsLump sum at closingDraw as needed up to limitInterest RateFixedVariable (usually)PaymentsFixed monthly amountFluctuate based on balanceBest ForOne-time large expenseOngoing or uncertain costs A home equity loan is a second mortgage that gives you a lump sum upfront. You repay it with fixed monthly payments over a set term (5 to 30 years), offering a predictable payment schedule. A HELOC (Home Equity Line of…