Master Home Equity Loans with This Ultimate Insider Guide

Types of Home Equity Loans

There are primarily two types of home equity loans: traditional home equity loans and home equity lines of credit (HELOCs). A traditional home equity loan provides a one-time lump sum with fixed payments, whereas a HELOC offers a revolving credit line that you can draw from as needed. HELOCs typically have variable interest rates, which can fluctuate over time³.

Choosing between these options depends on your financial needs and preferences. If you need a large sum for a specific project, a traditional home equity loan might be the best choice. Conversely, if you anticipate needing funds sporadically, a HELOC could offer the flexibility you require.