Home Equity Loan vs. Home Equity Line of Credit – What’s the Difference?

Are you looking at your home and thinking – maybe it’s time to start tackling your project or repair list? Whatever the project, we can help you finance it with a home equity loan or home equity line of credit (HELOC).

Both options allow you to borrow against the appraised value of your home, so what’s the difference between the two?

1. A home equity loan is a fixed-rate loan that provides cash in a lump sum and has accommodating repayment terms that work uniquely for you. Sometimes you’ll hear a home equity loan referred to as a “second mortgage”.
2. A home equity line of credit (HELOC) is a revolving line of credit, similar to a credit card, but secured by your home. With a HELOC, you can borrow up to a specific amount of your home equity and repay the funds slowly over time.

Not sure which one is right for you? Give one of our lenders a call – we’d be happy to help you discover which option is best for your needs!