Home Equity Loan/Line Comparison

Home Equity Loan
Home Equity Line of Credit
(HELOC)
Product Similarities
Receive funds in lump sum
Make loan advances as
funds are needed
Interest on either type is typically tax deductible*
Borrow a specific amount
for a set period of time
Offers easy access for
unexpected expenses
Interest rates are generally lower
than other types of credit such as
personal loans or credit cards
Fixed interest rate
Variable interest rate
Funds can be used for many purposes
Regular monthly payments
Fluctuating monthly payments
Applying is quick and easy

 

*Consult your tax advisor about the deductibility of home equity interest.