A: A home equity loan is a closed-end loan, which means you receive a lump sum of cash that you repay over a fixed term. A HELOC is a revolving line of credit, which means you can borrow money as you need it and repay it over time. HELOCs typically have variable interest rates, while home equity loans typically have fixed interest rates.
Q: Which is better, a home equity loan or a HELOC?
A: The best option for you will depend on your individual needs and financial situation. If you need a lump sum of cash for a specific purpose, such as consolidating debt or making a major purchase, a home equity loan may be a better choice. If you need ongoing access to credit, a HELOC may be a better option.
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