Ultimate Home Equity Loans Comparison Guide Inside Now

Types of Home Equity Loans

There are primarily two types of home equity loans: fixed-rate loans and home equity lines of credit (HELOCs).

A fixed-rate home equity loan provides a one-time lump sum with a fixed interest rate and repayment schedule. This option is ideal for those who prefer predictable monthly payments and have a specific, one-time expense in mind.

On the other hand, a HELOC offers more flexibility, functioning much like a credit card. It allows homeowners to borrow funds as needed, up to a certain limit, with variable interest rates. This option is suitable for those who anticipate ongoing expenses or want access to funds over time.