A home equity loan is a fixed rate loan based on the available equity in your home. The loan amount is given to you all at once, and you then pay it back in predictable, fixed monthly payments.
In contrast, a home equity line of credit (HELOC) is a form of revolving credit in which your home serves as collateral. The amount of the line is determined based on your credit and the available equity in your home. You may access as much or as little of your approved credit as you need at any time, providing you with maximum flexibility in using your home equity.
Pages on the site that refer to Home equity loans and lines of credit
Tax advantages and considerations
purchase
> homebuyer's guide
> step 1
Step 6: The road to closing
purchase
> homebuyer's guide
Step 1: Is it time to refinance?
refinance
> refinancing guide
Homebuying?
Refinancing?
You can add a home equity line of credit at closing yet not use it until you need it.
