Wednesday, October 28, 2026

Question: How does a HELOC differ from a home equity loan?

Answer: A HELOC is a revolving line of credit, usually with a variable rate. A home equity loan pays out one lump sum, typically at a fixed rate, and borrowers start repaying it right away. With a HELOC, borrowers draw money as needed and often pay only interest for the first 10 years. Payments can jump after that, or whenever rates rise. Both put the home up as collateral.