Consumption and Real Estate
What is the difference between a HELOC and a Home Equity Loan?
Question : What is the difference between a HELOC and a Home Equity Loan?
I know a HELOC is a “Home equity line of credit” but what is the difference between that and a “Home Equity Loan”?
heloc
Best answer:
Answer by cafe_blue_note
HELOC stands for Home Equity Line Of Credit, It is a revolving line of credit much like a credit card, the account is revolving for ten years,then converts to a fixed rate loan, A home equity loan on the other hand is a fixed loan for a set amount and is usualy amortized over ten years. hope this helps.
To add from above, all HELOC’s can be fixed at anytime. The down fall is that you have to pay both principal and interest, instead of just interest.