A home equity line of credit is a revolving, variable rate line of credit based on the available equity in your home. Because it is a line of credit you can get the money you need when you want it.
- Interest may be tax deductible.
- Only pay interest on the amount of your draw.
A home equity loan is a fixed rate and payment loan based on the available equity in your home. You get your money all at once and then pay it back in predictable, fixed monthly payments.
- Receive entire amount at closing.
- Interest may be tax deductible.
- Low fixed rate for the life of the loan.