When is a Home Equity Loan Better than a HELOC?

[Lawrence Potts]

Hello BP,

When is a Home Equity Loan better than a HELOC?

My understanding that a Home Equity Loan is simple and straight forward. I'm not familiar with typical LTV's or processing fees attached.

A HELOC sounds like a better option and I would bet that the majority of members would pick HELOC over an Equity Loan and would refinance over an equity loan. However, in the offset chance of a market downturn, how likely is it that a bank would close a HELOC and request borrowed credit back? Would that make an equity loan better? What causes a bank to request the line of credit back and how would they go about that process? And what are the benefits of a HELOC vs an equity loan in case I'm missing anything? Thank you