There are two options available to access your home’s equity and depending on your needs, one may work better than the other. It’s important that you understand how both options, a Home Equity Line of Credit (HELOC) or a Home Equity Loan work before deciding which option is best for you.
A Home Equity Line of Credit (HELOC) is an open line, available for use at any time, present or future. The many benefits of a HELOC include:
A Home Equity Loan, also known as a closed-end second mortgage, is a solution to get cash for a one-time need and specific loan amount, e.g., remodeling your kitchen and paying off the loan in a five-year period. The many benefits of a home equity loan include:
*Consult a tax advisor regarding the deductibility of interest