What is the difference between a HELOC and a Home Equity Loan?

March 23, 2010 by
Filed under 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”?

2 Responses to “What is the difference between a HELOC and a Home Equity Loan?”

cafe_blue_note says:

March 23, 2010 at 7:09 am

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.
barraganf2001 says:

March 23, 2010 at 8:08 am

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.

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Gary Rocks