Loans and Mortgages Planner

  Home Equity Loan vs. Line of Credit: Understanding the Differences Introduction Homeownership is a significant milestone for many people, and with it comes the potential for utilizing the equity in one's home to access credit. Home equity loans and home equity lines of credit (HELOCs) are two of the most common ways homeowners can tap into their home's equity to secure financing. Both types of loans are secured by a homeowner's property, but they have some fundamental differences. In this article, we'll take a closer look at home equity loans and lines of credit, how they work, and what the pros and cons of each type of loan are. What is a Home Equity Loan? A home equity loan is a type of loan that allows homeowners to borrow against the equity they've built up in their home. Home equity is the difference between the value of a home and the amount of any outstanding mortgage debt. Home equity loans are typically available for up to 80% of a home's appraised v