Score Big With Home Equity Loan Secrets Now
Types of Home Equity Loans
There are two primary types of home equity loans: the standard home equity loan and the home equity line of credit (HELOC).
- **Standard Home Equity Loan**: This is a lump-sum loan with a fixed interest rate and repayment schedule. It's ideal for homeowners who need a specific amount of money for a one-time expense.
- **Home Equity Line of Credit (HELOC)**: This option functions more like a credit card, where you have a revolving line of credit that you can draw from as needed. HELOCs typically have variable interest rates, which means your payments could fluctuate over time2.