What is the difference between a HELOC and a home equity loan?

A HELOC (Home Equity Line of Credit) and a fixed home equity loan both allow you to borrow against the equity in your home, but they work differently.

• HELOC: A revolving line of credit that lets you borrow money as needed, up to your approved credit limit. It has a variable balance, flexible payments, and a 10-year revolving credit period. A HELOC may be a good option for ongoing expenses or projects.
• Fixed Home Equity Loan: An installment loan that provides the funds all at once. It has a fixed balance and fixed payments, making it a good option for one-time expenses when you know how much you need to borrow.