Home Equity Loans vs. Home Equity Lines of Credit: What's the Difference?

[Jorge Vazquez]

When tapping into your home's value, you have two main options: a home equity loan and a HELOC (home equity line of credit). A HELOC works like a credit card—you can borrow, repay, and borrow again, making it flexible for ongoing projects like flipping or renovations. Remember that interest rates are variable, so they can change over time. On the other hand, a home equity loan gives you a lump sum with fixed payments, which is more predictable and great for one-time expenses like consolidating debt or buying a rental. Both can offer tax perks if you use the money for home improvements. It comes down to what fits your needs—if you want flexibility, go for the HELOC. If stability is more your style, the home equity loan covers you. Need help figuring out which one's best for you? I'm here to help! Jorge

Tell me, how are you using your HELOC for Real estate investing?