← Back to Education CenterRevolving credit or a lump sum
HELOC vs. Home Equity Loan
Both use home equity as collateral, but they work differently.
01
HELOC
A home equity line of credit is a revolving line that can provide flexible access to approved funds, typically subject to a draw period, repayment terms, and variable or other rate provisions depending on the program.
02
Home equity loan
A home equity loan generally provides a lump sum and is typically structured as a second mortgage with its own repayment schedule.
03
Compare the full cost
Review rates, fees, repayment structure, monthly payment, total finance charges, and the effect on the home's equity.