What is the difference between a home equity loan and a home equity line of credit?

Written By: admin on November 13, 2009 2 Comments

We need to get access to ,000, but not sure of the exact amount.
Would it be enough to have the home equity line of credit?

Jimmy B on: 13 November 2009 at 9:37 pm

A home equity loan you get all the money up front. A home equity line of credit you have the money available and can use it as needed. With a loan you pay interest on the whole amount. With a line of credit you pay interest only on the amount that you have used.
David P on: 13 November 2009 at 9:37 pm

Also with a line of credit your interest rate usually fluctuates. So the rate you pay now will most likely go up in the future.

A home equity loan usually has a fixed re-payment term and interest rate.