HELOC vs Home Equity Loan?

[Misty Wilson]

Good afternoon everyone!

If I own a home free and clear and want to invest in another property what is the differences/advantages to choosing one or the other? I know the generalities of each option and the primary differences and still lean toward a home equity loan. 

Just about everyone says HELOC but it seems like there are more hoops and more costs involved with a HELOC than a home equity loan. For example: I know Discover does Home Equity Loans without closing costs and very good interest rates. Why does everyone choose HELOC?

[Gurbeer Sangha]

Most banks do HELOCs without closing costs and for really good terms. The best thing about a HELOC is that it's kind of like a credit card. You only pay interest when you use it and you can pay it to 0 whenever you want and use it again whenever you want. To me, it is the superior choice. Check with local banks and credit unions about getting one