FIXED RATE EQUITY LOAN VS HELOC

[Joshuam R.]

This is my question, I am looking at these two products, what are your thoughts?

Fixed-Rate Equity Loan

The best part about our Fixed-Rate Equity Loan is stability. This is a great option if you’re in need of a specific amount of money for a one-time expense. You'll get a lump sum amount and enjoy a fixed rate for the life of the loan with set monthly payments.

Loan Details:

• Borrow up to 100% of your home's equity
• Min/Max Loan Amount: $10,000 - $500,000
• Fixed rate for the life of the loan
• No application or origination fee

Rate:

APR as low as:5.740%

Term:

5-, 10-, 15-, 20-year

VS

Home Equity Line of Credit

Our Home Equity Line of Credit offers flexibility. If you expect to have ongoing expenses, this option is for you. Borrow as you need, when you need it, up to your maximum credit limit.

Loan Details:

• Borrow up to 95% of your home’s equity
• Min/Max Loan Amount: $10,000 - $500,000
• Variable rate, based on the U.S. Prime Rate
• No application, origination, annual or inactivity fee
• Interest-only option available

Rate:

APR as low as:5.750%

Term:

20-year draw period, followed by 20-year repayment period

[Nicholas Coulter]

Quote from @Joshuam R.:

Quote from @Nicholas Coulter:

@Joshuam R. I would ask what are you planning to do with the money? That may determine which is a better strategy for you.

liquidity for DP on second investment property along with using HML

or (currently living in our second primary home) DP funds to be used on 3rd primary home to down size monthly living expense and rent out second current home.

So the a fixed equity loan I would do the house hack. You can lower living costs and use that delta to pay down the loan and rinse and repeat. 
if you wanted the hard money and heloc I would try and get a value add BRRRR and once you refinance you can drop the HM and heloc loan! Hope this helps.