Home equity loan vs. HELOC: What’s the difference?

HELOCs and home equity loans both let you borrow against your home equity, but they have some pretty significant differences. Home equity loans come with a lump-sum payment, while HELOCs let you withdraw funds over many years. Home equity loans have consistent interest rates and payments. HELOCs, on the other hand, have rates and payments that can fluctuate.