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What’s the difference in a HELOC and Home Equity Loan?

Both a home equity line of credit (HELOC) and a home equity loan (HELoan) allow you to borrow against the equity in your home—the difference between your home’s value and the amount you owe.


Both serve as an alternative to a refinance when you want to keep your current mortgage rate, and both may allow you to access more of your equity than a typical

refinance will. And funds from both can be used for anything from home repairs* to college

tuition to consolidating high- interest debt.


There are no restrictions on how you use the funds. There are, however, key differences to remember. Here’s a comparison of typical HELOCs and HELoans.



A risk for all home equity loan products is the potential for a drop in home

values. While values typically trend higher over time, if housing prices drop

bef ore you get ready to sell or ref inance, you could end up owing more than

your home’s value.


If you or someone you know would like to learn more about HELOCs or

HELoans, please reach out. I’ll be happy to help.


*Tax advantages may be available when funds are used for home improvements. Always consult a tax advisor.

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