HELOC vs Home Equity Loan

[Michinori Kaneko]

Hi everyone,

I purchased my primary resident in Queens, NY about 5 years ago. Thanks to crazy NY Real estate market, I have significant amount of equity on my PR which i'm considering tapping into to invest in other rental properties. I've looked around on past posts as well as google, but I can't seem to find any reason why anyone would choose HEL over HELOC. Let me know if I'm missing anything:

1. HELOC allows you to draw as much as you need (up to limit) when you need it, as opposed to HEL gives you everything at lump sum, whether you need everything or not.

2. HELOC allows you to pay interest only, where as HEL requires P&I like mortgage

3. HELOC are mostly Variable interest rate, but you CAN find fixed interest ones.

Let me know if i'm missing something.  Thank you!