What is the difference between a home equity loan and a home equity line of credit?
We need to get access to $30,000, but not sure of the exact amount.
Would it be enough to have the home equity line of credit?
We need to get access to $30,000, but not sure of the exact amount.
Would it be enough to have the home equity line of credit?
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A home equity loan you get all the money up front. A home equity line of credit you have the money available and can use it as needed. With a loan you pay interest on the whole amount. With a line of credit you pay interest only on the amount that you have used.
Also with a line of credit your interest rate usually fluctuates. So the rate you pay now will most likely go up in the future.
A home equity loan usually has a fixed re-payment term and interest rate.