What’s the difference between a home equity loan and a HELOC?
Think of your home equity like a toolbox—you can use it two different ways.
A home equity loan is a single tool: one big hammer. You get a lump sum upfront, usually with a fixed interest rate and a predictable payment each month. Perfect for remodeling the kitchen or paying off high-interest debt.
A HELOC is a whole toolbox: flexible and reusable. You draw money as needed during a “draw period,” pay interest only on what you use, and later enter a repayment phase.
Rule of thumb:
- Need money once? Go with a home equity loan.
- Need access over time? A HELOC gives flexibility.
In 2025, HELOC rates adjust with the prime rate, so if stability matters, a fixed home-equity loan may help you sleep better.
Even if you have been turned down by another lender, LENDERLINE has a loan program for you.
Call LENDERLINE at 1-888-661-7888 or complete this form to schedule a FREE mortgage consultation.