Home Equity Loan Secrets You Can't Afford To Miss

Types of Home Equity Loans

There are generally two types of home equity loans: a fixed-rate home equity loan and a home equity line of credit (HELOC). A fixed-rate loan provides a lump sum with a fixed interest rate and repayment schedule, offering predictability and stability. In contrast, a HELOC works more like a credit card, where you have a revolving line of credit that you can draw from as needed, usually with a variable interest rate. Each type has its benefits and is suited to different financial needs and goals.