Frequently Asked Questions (FAQs)

Home equity loans and home equity lines of credit (HELOCs) are two ways to access the value you've built up in your home, but they work differently.

A home equity loan is a one-time loan that's secured by the equity in your home. It provides a set amount of funds up front, which are repaid over a specific time frame. This option may appeal to those who prefer predictable monthly payments and know exactly how much they need to borrow.

A home equity line of credit (HELOC) offers more flexibility. Rather than receiving a lump sum, you can access funds as needed up to an approved limit, similar to a credit card. HELOCs generally have two phases: a draw period, when you can access funds and make smaller payments, followed by a repayment period, when you pay back both the amount borrowed and any applicable interest.

If you're planning a project with ongoing costs or aren't sure how much funding you'll need, a HELOC may be the better fit. If you prefer a fixed amount for a specific expense, a home equity loan might make more sense.