What is the difference between a HELOC and a 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"?
By
Posted on
07/04/06 Total Answers
2
Answers-
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.
Answer by :
cafe_blue_note On Date
2006-07-04 12:50:35
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.
Answer by :
barraganf2001 On Date
2006-07-04 23:16:03
