Home Equity Loan
A Home Equity Loan (HEL) lets you borrow a set amount of money using the value of your home. You get the money all at once and pay it back over time with a fixed interest rate and monthly payments. A HEL may be good for big one-time costs like home repairs or paying off debt.
Home Equity Line of Credit (HELOC)
A HELOC (Home Equity Line of Credit) is also a loan using your home's equity, but it works more like a credit card. You can borrow money as you need it—up to a certain limit—and only pay interest on what you use. It’s flexible and useful for ongoing expenses, like home improvements or emergencies.